Government Sells Some Lloyds Shares

Government Sells Some Lloyds Shares.

The UK Government has sold a partial stake of its share in Lloyds Bank.

The State did own nearly 39% of Lloyds Banking Group but has sold around 6% for £3.2bn.

This means the Government’s shareholding in Lloyds Banking Group (which also includes the newly reformed TSB Bank) is now 32.7%.

The deal, at 75p per share, is a roughly a break even for the Government with a very slight profit.

Comment

We suggest the “dice is loaded” in the Government’s favour.  It is in the Government’s interests to stimulate the economy, stimulate property prices to reduce toxic debt problems at all the major banks, in which it has a shareholding in most of them.

The Government should recoup all of the money it vested in bailing out banks and we see it as a positive move to returning the banking sector to private ownership.