bonuses and salaries as it saw fit. The prospectus sheds an alarming new light on why HBOS came so close to collapse at the height of the banking crisis in September. The circular states that 'a review of non-public information' by Lloyds TSB shows that 'negative net capital adjustments of no more than £10bn' will be needed at HBOS after the acquisition. The amount written off will affect the balance sheet rather than profits of the merged bank.