As many workers around the UK come to terms with the fact that the Cheltenham and Gloucester brand-name will be no more there is growing anger in the financial sector. Cheltenham and Gloucester is a financial institution which has been around for over 150 years and, until it came under the control of Lloyds bank, seemed set to prosper in the future. So what has exactly happened to the Cheltenham and Gloucester?

It looks as though the brand-name, which was predominantly a mortgage provider, overlaps a number of Lloyds bank and HBOS operations and as a consequence has become "surplus to requirements". There had been no threat of closure to the Cheltenham and Gloucester or even any mention of the operation even in the darkest times of recent weeks. The company has literally become the victim of overexposure to the UK mortgage market by Lloyds bank, in conjunction with the company's HBOS subsidiary.

There was some surprise that Lloyds bank did not attempt to sell off the Cheltenham and Gloucester brand-name and branch network although there would be obvious competition issues in the UK. However, as a consequence of the lack of activity in the UK banking sector, falling margins and liquidity issues it looks as though we are about to say goodbye to one of the U.K.'s best-known building society brand names.

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