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HBOS takeover: An anxious wait for bank's workforce
HISTORY shows that takeovers and mergers lead to site closures and job cuts.
It will be some time before the effect of the fallout is known.
When the Halifax and the Bank of Scotland merged it meant the loss of 6,000 jobs and the HQ leaving the town for Edinburgh.
Yesterday's bullish statements from HBOS that the bank would weather the storm proved false.
The crisis started to deepen during the summer when HBOS announced hundreds of job cuts that are now starting to infiltrate its UK operations.
Continuing difficulties in the housing market and the worldwide financial crisis made matters worse.
This week's collapse of American giant Lehman Brothers led to HBOS shares plunging as much as 50 per cent, forcing banking chiefs to turn to Lloyds TSB.
It is the latest milestone in the long history of the bank, which was founded in Halifax and became one of the country's best-known companies.
As people flocked to towns for work in the Industrial Revolution, the need for housing became critical.
In December 1852 a group of men gathered at the Old Cock Inn, Halifax, to set up an investment and loan society for workers.
Those with spare cash could invest, others could borrow for a home.
By Christmas that year, Halifax Perman-ent Benefit Building Society was established.
In 1913 assets reached 3 million and the Halifax became the largest building society in the world.
Expansion continued apace with a new head office in Commercial Street in 1921 and a London office in 1924.
In 1928 the Halifax Permanent merged with the Halifax Equitable and a single society was formed – the Halifax Building Society.
The Trinity Road offices were built in 1973 and a huge programme of branch modernisation, including the installation of cash machines, began.
Changes to legislation in the 1980s allowed building societies to extend into other financial services and the Halifax diversified into personal banking, stock broking, insurance and estate agency.
The 1990s saw the merger with the Leeds Permanent Building Society and the acquisition of Clerical Medical.
Then members voted for plc status. It was the largest flotation the Stock Market had seen, with 7.5 million shareholders overnight.
Birmingham Mid-shires was acquired in 1999 and in September 2001 the Halifax merged with the Bank of Scotland and HBOS was born, making it the fifth largest financial services company in the UK. The bank's retail division has its headquarters in Trinity Road.
Thousands of Calderdale families are now anxiously waiting to see what the future holds more than 150 years later.
Thousands of jobs could be at risk
Main points of takeover deal
Takeover clockwatch: Follow the developments
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Weather for Halifax
Saturday 11 February 2012
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