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Page last updated at 12:42 GMT, Wednesday, 17 September 2008 13:42 UK

HBOS merger talks with Lloyds

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HBOS has confirmed it is in advanced talks with Lloyds TSB about creating a UK retail banking giant worth �30bn.

The proposed union is being encouraged by both the Treasury and Financial Services Authority (FSA) as a deal will ease concerns about the health of the UK banking sector

John Moylan reports.

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