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.
Jun/090
Government Asset Protection Scheme
The new Government Protection Scheme will insure banks against asset losses and they will therefore be able to commit more to lending.
RBS had currently signed and now Lloyds have signed up to the scheme which will see them lending around £28 billion.
However, the Government has said that although taxpayers will eventually get something back, they “do not plan on nationalising the banking sector”.
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