Conceived in the crucible of the financial crisis eight weeks ago, the proposed takeover of Halifax Bank of Scotland by Lloyds TSB now looks hasty, maybe even ill-judged. On competition grounds alone, there was a strong case to block a merger that would restrict choice for UK savers and borrowers. That was before the government, with its £400bn taxpayer-funded rescue of the banking industry, undermined the logic of a private sector deal that was supposed to avoid another nationalisation. In these changed circumstances, investors are right to ask whether HBOS would be better off if it remained independent.

The revolt against the merger is being led by two Scottish banking grandees, Sir Peter Burt, a former Bank of Scotland chief executive, and Sir George Mathewson, former head of Royal Bank of Scotland. While lacking a clear alternative strategy, their criticism is justified.