UK government takes control over Lloyd’s bank
Saturday, March 7th, 2009
Jill Treanor, Nick Mathiason, The Guardian
March 7, 2009
Taxpayer will own up to 77% of banking group after disastrous merger with HBOS as pressure grows on board to resign
The government today confirmed it will take majority control of Lloyds Banking Group, with the taxpayer owning 65% of the voting shares in return for insuring £260bn of the group’s toxic assets.
After days of detailed negotiations the terms of the takeover were announced by the Treasury, with Lloyds making a commitment to lend at least £28bn over the next few years.
The government is to insure the bank’s riskiest loans and in return the taxpayer will up its ownership of the bank from 43% to 65% – rising to 77% when non-voting shares are included.