Back to HBOS, and a fresh worry for Eric Daniels, the Lloyds TSB chief, as he reels in his fish. The trustees of the HBOS pension fund are threatening trouble unless he agrees to guarantee pension promises in the same watertight way in which they are underwritten by HBOS.

They have put their concerns to the Pensions Regulator. Lloyds is playing down the problem, and refusing to budge, arguing that the HBOS scheme will be treated in the same way as any existing Lloyds scheme.

The trustees are concerned. According to their estimates, the fund owes £3 billion to £5 billion more in pension promises than the kitty is likely to deliver. That represents a blowout in the deficit from only £95 million two years ago. The employer covenant has been seriously weakened by HBOS's recent problems.

The scheme is large, with 79,000 members; 28,000 are HBOS employees who are anxious about their jobs as Lloyds prepares to cut thousands of roles. The last thing they need is any doubt, however remote, about their pensions. The trustees are right to flex their muscles, although they will need the regulator's help to wrest concessions from Lloyds.

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