Lloyds Bank Nationalised _ 65% Government Stake
Published / Last Updated on 05/03/2009
Lloyds Bank Nationalised - 65% Government Stake
The Government is taking a controlling share of 65% in Lloyds Banking Group, up from a 43% share
The Government will pump an extra £28bn over the next two years into Lloyds Banking Group in addition to insuring £260bn of ‘toxic debt’ i.e. higher risk loans for a premium of around £16bn.
In short, the Halifax Bank of Scotland HBOS ‘forced’ takeover by Lloyds TSB has left the new Lloyds Banking Group with an additional £200bn in higher risk commercial loans, high risk personal loans and at risk mortgage debt as a legacy from HBOS in addition to an £11bn trading loss for the HBOS part.
To ease concerns, the Government has effectively guaranteed all losses on this debt from the insurance premium.
Useful links:
Request expert financial advice now
Purchase guidance on financial planning in the Money Shop
Useful links:
