STUDENT CAN reveal the University of Edinburgh holds substantial investments in Lloyds TSB and HBOS, two banks which have been buffeted by the ongoing subprime mortgage crisis and have been forced into a merger.

The University’s finance department sounded a note of caution about the current economic climate, but maintained that the University could ride out the situation in the long term.

STUDENT CAN reveal the University of Edinburgh holds substantial investments in Lloyds TSB and HBOS, two banks which have been buffeted by the ongoing subprime mortgage crisis and have been forced into a merger.

The University’s finance department sounded a note of caution about the current economic climate, but maintained that the University could ride out the situation in the long term.

University Finance Director Jon Gorringe told Student: “The university is carefully monitoring the activity of our investment managers – our endowment funds, our general funds and our pension funds. We have investments in a range of equities and bonds which will include many of the major UK banks.

“Clearly in the last year there have been a substantial fall in the capital value of those investments, but they are long-term investments, and their capital value does not directly impact in the short term on the activity of the university”

The takeover of HBOS by Lloyds could see some HBOS shareholders losing out, but is widely regarded as being necessary to secure the future of the bank. The University has shares in both banks on its investments portfolio.

The next few weeks will see First Minister Alex Salmond present the case for keeping banking jobs in Scotland to Lloyds TSB bosses, who will have the ultimate say on HBOS’s fate.

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