STAFF working at Bank of Scotland International in New Street found themselves working for a new boss this morning.

As widely predicted yesterday, Lloyds TSB has agreed a deal to acquire Halifax Bank of Scotland for £12.2 billion.
No public comment has yet been made on how the take-over will affect the local operation. The deal, which is subject to shareholder agreement as well as ratification from the Financial Services Authority – but not to competition regulation – will create a new banking giant commanding around a third of the UK mortgage and savings markets.

The head of Lloyds TSB in the Channel Islands and Isle of Man, Martin Fricker, was today out of the Island and unavailable for comment. But Mr Fricker (pictured), who is also the president of the Jersey Bankers Association, said earlier this week that although Jersey’s finance industry was diverse enough to withstand market turbulence, investor confidence was being hit hard.

Lloyds TSB already has a substantial presence in Jersey, employing several hundred staff servicing both retail customers based in the islands and UK expatriates around the world. Bank of Scotland International, which is the offshore arm of HBOS, has a relatively small office in New Street which also services UK expatriates and provides savings products available to Island residents. HBOS mortgages are not available in Jersey.