Lloyds TSB adds just one HBOS exec to board

Only one HBOS executive has been appointed to the board of Lloyds TSB following the merger.

Out of the five board appointments made, only one member of HBOS – company secretary, Harry Baines – has been included.

The chairman and chief executive of HBOS have already resigned following the announcement Lloyds TSB would bailout the struggling bank.

Lloyds TSB's chairman Sir Victor Blank will continue in his role in the larger group, as will chief executive Eric Daniels.

Other appointees include Helen Weir, director of UK retail banking for Lloyds TSB, who will reprise her role in the merged bank; Truett Tate, currently director of wholesale who will also keep his job; and Archie Kane, director of insurance, who will remain in the role in addition to representing the new board in Scotland.

In addition, Lloyds TSB also appointed four members of the group executive committee, only one of whom is from HBOS.

Jo Dawson, who is head of HBOS's insurance and investment division, will be appointed wealth and international director.

The group's director of IT and operations will be announced soon, the bank added.

Both HBOS and Lloyds TSB have confirmed they will be taking part in the government's recapitalisation scheme.

Yesterday, HBOS said it has taken advantage of its recapitalisation by issuing a government-backed bond of €3 billion.

The bank said the two-year bond has been over-subscribed, after investors scrambled to take advantage of the guarantee issued by the government.

In response to the demand, HBOS said it is launching an additional three-year sterling bond.

"HBOS welcomed the recent government announcement about the new credit guarantee scheme as a positive measure that would help liquidity in the market.

"It stated at the time that it planned to use the new facilities. This new euro transaction demonstrates how HBOS is using the scheme," the bank said in a statement.