Lloyds Floats TSB

Lloyds Bank to Float TSB.

Lloyds Banking Group has announced plans to float i.e. sell off a quarter share i.e. 25% of its ownership of TSB Bank.

As part of the credit crunch and banking crisis, Lloyds Banking Group became simply too big with mergers and state ownership transactions during the credit crunch.

Lloyds Bank and TSB Bank originally merged over 20 years ago.  The credit crnuch then hit with Lloyds taking over HBOS (Halifax Bank of Scotland) and immediately the whole group was bailed out and taken into majority state owned.

A 'supertanker' bank.

As part of new EU rules on the size of banks, on bank bailouts and state ownership reliance, Lloyds has long been preparing for segregation of the bank businesses.

Operation "Verde" was the main phase with over 600 banking branches moving out of Lloyds Banking Group brand to become TSB Bank.

The next stage now to segregate is for LLoyds to sell off a 25% in TSB Bank.

This will raise much needed capital as well as work towards complying with new EU banking rules.

The 25% share will be available to both institutional investors and small investors although small investors will need to buy via intermediaries i.e. stock broker and share dealing platforms.

For every 20 shares you buy, you will receive 1 free additional share.  This is up to a value of £2,000.

Comment

Lloyds Bank is still required under EU commission rules to sell the remain stake by 2015.