HBOS RBS and Lloyds: Cheque Please _ GBP40bn

HBOS, RBS and Lloyds: Cheque Please - £40bn

Following meetings all day Sunday and overnight, the Government has confirmed this morning they are pumping more than £40bn into HBOS, RBS Group and Lloyds TSB Group with Barclays going it alone.
HBOS will receive £11.5bn, of which £3bn will be the government owning preference shares and the remaining £8.5bn issuing ordinary shares that the Government with guarantee, giving a controlling interest in HBOS technically nationalising them.

Lloyds TSB will receive up to £9bn although they are also in the middle of acquiring HBOS and look to be re-negotiating given the fall in share price and its Government takeover.

By far the largest, RBS £20bn, of which £20bn.  Sir Fred Goodwin, Chairman will lose his job.  The RBS deal, similar to HBOS, but bigger, is also a combination of preference shares of £5bn and £15bn of government underwritten ordinary shares.  RBS have confirmed that no further dividend will be paid until the £5bn government preference shares have been repaid.

Barclays in the meantime confirmed it was going it alone and have made arrangements to raise £10bn by issuing more shares and declaring no dividend this year.

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