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Unity sustained

Brian Taylor | 11:12 UK time, Thursday, 18 September 2008

As it turned out, unity was sustained. All - and urged efforts to minimise the jobs impact upon Scotland.

Prompted by opposition leaders, Alex Salmond disclosed that he has already had discussions with the prime minister, the chairman of Lloyds TSB, the trades unions and others.

Politicians will, as Mr Salmond said, "strain every sinew".

Iain Gray, making his first appearance as leader, offered full backing. As did Annabel Goldie and Tavish Scott.

In reality, what can now be done? Few expect, seriously, that the HQ of the new combined bank will be based in Scotland.

Scotland can ask - and, indeed, should press for the maximum. But Scotland may not get.

The best may be the retention of some head office function, in both retail and corporate.

The key is to hold on to senior decision-makers, not just executive managers.

Jobs? Perhaps not as many will go from High Street retail in Scotland as feared, given the relatively limited overlap here.

The big losses could be in back office functions. Perhaps 3-400 in total?

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It is, according to the deal document, "a compelling business combination".

Intriguing word, that. Could mean "attractive" or "externally driven". I veer towards the latter.

The same document, charting , promises to use The Mound in Edinburgh as the "Scottish headquarters", to hold the AGM in Scotland, to print Scottish bank notes and to focus on keeping jobs in Scotland.

All comforting, to some extent. Against that, the deal foreshadows inevitable efficiencies of scale, eliminating duplication.

That means branches. That means jobs. My sympathy to those facing uncertainty.

Plus headquarters functions will transfer to London. That will be a source of political debate at Westminster and here at Holyrood as politicians scramble to pick up the pieces.

Among the first up in that regard will be . Labour's newly elected leader at Holyrood is due to pose questions to the first minister today for the first time.

Intriguing approach

His topic? Guess. Labour has already proposed a "banking summit", indicating that they favour a cross-partisan approach.

Alex Salmond stressed yesterday that he is not opposed to the merger per se. He is, however, angry with what he told me were the and enforced these developments.

It will be intriguing to see whether a multi-party approach can be sustained.

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