The former head of the City regulator has denied it leaned on Lloyds to take over its stricken rival HBOS in 2008. Sir Hector Sants told the High Court yesterday that the Financial Services Authority was “supportive of the acquisition” on the grounds that it would help to stabilise HBOS and the wider banking system, but that the FSA “did not in any way intend to pressurise Lloyds, overtly or otherwise”. Letters disclosed for the first time and referred to in the case show that Sir Hector had warned the Treasury in September 2008 that if the government blocked the deal on competition grounds it would “drastically undermine market confidence and cause significant harm to consumers and the UK economy”. On the same day Sir…

Source: The Times December 15, 2017 00:06 UTC