Aug/101
Lloyds Banking Group stops PPI sales
Lloyds Banking Group has stopped selling the controversial payment protection insurance (PPI) across all of its brands, which include Halifax and the Bank of Scotland.
Aug/090
Lloyds blames huge 6 month loss on HBOS
After announcing that they had made a £4 billion loss in the first 6 months of 2009, Lloyds were quick to shift the focus of blame from themselves to HBOS whom they took over back in January. The loss was always inevitable given the scale of the takeover and Lloyds are hiding behind the fact that they are currently dealing with not only their own financial problems but HBOS’ cripling debts as well.
The bank is currently publicly owned to the tune of 43% after they went cap in hand to the Government to cover cripling debts with a £13.4bn loan. This was to cover ‘toxic loans’, 80% of which belonged to HBOS. Despite this depressing news, Lloyds are optimistic about the future suggesting that financial results will begin to improve in the near future.
The one thing to be taken from this is that HBOS were wildly irresponsible in their risk taking and were probably the most guilty of all UK’s major banks. It also serves as a reminder that we should think twice before going back to a culture of short-selling, bonuses, and self-gain risk taking.
Jun/090
Government has over 65% Share of Lloyds
Lloyds have signed the new Government Protection Scheme, but they are not happy about it.
Lloyds have signed the agreement after losing £10.8bn when they bought HBOS. The move to take over HBOS was supported by the government but it later suffered a loss of £10.8bn that Lloyds had to take on themselves. This has forced Lloyds to sign up to the Asset Protection Scheme to protect them from ‘toxic loans’, but in turn this gives the Government over 65% share in the company.
The asset protection scheme has been designed to help the banking sector and give consumers more confidence within the market.
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