Of Special Interest
27th January 2012
Eric Daniels to join StormHarbour
Eric Daniels, former CEO of Lloyds Banking Group is to become a principal at StormHarbour, a boutique which helps with capital raising and debt restructure.
The job is not technically full time though Daniels said that it wold take up 'a large chunk' of his time.
Daniels was CEO at the time Lloyds TSB acquired HBOS during the height of the financial crisis. This in turn was the reason for the bank requiring state aid. Shareholders who have seen their equity diluted many fold and not received any dividend since do not think of him kindly. Daniels insisted at the time the deal to acquire HBOS was done because of the business logic and not because he was persuaded to rescue HBOS by either the Bank of England or the Government. Normal competition rules which would have required a Competition Commission investigation and in all likelihood a ban on the acquisition because it gave the new group more than a 25% of the market were waived as the government believed HBOS on the brink of failure. Daniels also oversaw the very aggressive sell of Payment Protection Insurance. His successor was required to charge £3.2bn to settle PPI compensation, more than three times any other bank. The impact on profits of this charge is still an ongoing issue with regard to a bonus clawback that Daniels received.