The Treasury Select Committee may examine the proposed takeover of HBOS by Lloyds TSB as part of an investigation into financial stability and transparency.

The government waived competition rules to allow Lloyds TSB to move quickly for HBOS.

It is understood, however, that the Treasury committee might look at what part HBOS’s business model played in its problems and the implications of the new bank as part of a wider investigation.

Sunday Times