Lloyds Banking "Stitched Up" As Co-op Buys Bargain Branches
LONDON -- Shareholders in Lloyds Banking (LSE: LLOY.L  ) , the
company that was formed in 2009 when Lloyds TSB ruined itself by
buying HBOS, were kicked in the teeth last week after the Co-
operative Bank bought 632 of its branches in a deal worth up to
750 million pounds.  In a stroke, the Co-operative Bank has
dramatically expanded its existing branch network, thus
increasing its economies of scale, and it has done so at a
bargain price. Lloyds, on the other hand, has been royally
stitched up as it was forced to sell to the authorities'
preferred bidder in spite of there being more lucrative offers
on the table.  Three negatives for Lloyds Lloyds was forced by
the European Union to sell these Project Verde branches because
the EU felt that the bank's market share was too large. Oddly
enough, the EU was happy for the original deal to buy HBOS to go
ahead when it could have easily vetoed it for the same reason.
Lloyds has also been forced to accept