The takeover of HBOS puts many bank employees north of the border at risk.
Lloyds TSB's takeover of mortgage lender HBOS is causing political fallout in Scotland, with first minister Alex Salmond calling for jobs north of the border to be protected.
The £12.2 billion, all-shares deal was completed last month after HBOS shares suffered a sharp decline in value. The general volatility on the financial markets, along with investor scepticism over its financial position, led HBOS to accept the government-brokered takeover - even though the offer was a fraction of its market price prior to the credit crunch.
However, this has caused tension with the disparate parts of HBOS - a company which is itself the result of the 2001 merger of Halifax with the Bank of Scotland. The possible relocation of company headquarters from Edinburgh to London - where Lloyds has its City offices - as well as the potential loss of 40,000 workers, has sparked fierce criticism in Scotland.
Mr Salmond made his comments in the run-up to a meeting of Lloyds chairman Victor Blanc with the Scottish government's Council of Economic Advisors.
He said: "As decisions are being planned that will define the shape of that organisation, and the future of Scottish jobs and decision making, we must make a clear and united case for Scotland as a world-class business base.
"This is the time to harness the intellectual firepower at our disposal to promote Scotland's competitive advantage."
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