HBOS has confirmed that talks about a merger with / buyout by Lloyds TSB are at an advanced stage. The deal will create a huge £30bn player in the banking industry, and despite some concerns being raised about the competition aspects of creating such a giant, the government have said that they will overrule any objections raised by regulators.

This shows the determination of the government that the deal they’ve helped broker will go through, relieving speculator pressure on HBOS which has seen its shares plummet in value. Whether the deal serves to calm trader’s nerves, or they simply turn their attentions to a new ‘victim’, remains to be seen.