Lloyds TSB/HBOS: Who’s the novice?

Does Gordon Brown’s left hand know what his right hand is doing? The UK prime minister is desperate for Lloyds TSB’s purchase of HBOS, the wobbly £680bn lender, to go ahead. But he’s also only planning to increase deposit insurance guarantees to £50,000 from the current £35,000, according to widespread reports. That could be too little too late. Temporarily lifting the cap completely would be a better solution, not just for HBOS but for the whole industry. One can understand why Brown is so kee...