Lloyds bank acquired HBOS in 2009. The HBOS debacle, which saw a group of bankers defraud small businesses and lavish the proceeds on luxury items, holidays and escort services, has now cost the bank £245million in compensation payments. These must be accounted for when the bank releases its next quarterly result in November. Experts estimate that Lloyds may have to pay out a total of £500m when the compensation payouts are done and dusted. Several bankers and advisers are serving time for the fraud which occurred between 2003 and 2007.