WikiWirral Share a Little Learn a Lot about your Wirral
Forum Stats
12137 Members
65 Forums
72400 Topics
976204 Posts
60 posts in the last 24hrs
Max Online: 7831 @ 8th Apr 2013 4:18pm
Who's Online - Click Me
79 registered (alan128, 11 invisible), 1532 Guests and 265 Spiders online.
Key: Admin, Global Mod, Mod
Social Media : Follow Us


(Views 7days)This Weeks Most Read
Vet help 573
Another Big Waste Fire in Liverpool. 521
Talk Talk Security Breach 435
Anyone Read Chinese Writing 368
Another tree down on Arrowe park Road? 288
Mobile mechanic needed to fit a wishbone 259
That was kept a bit quiet? 245
RIP Peter Vaughan 193
Game shocking prices!!! 164
Cowhouses 161
New General Forums
Lib/dems rule the day
by JimmyG
2nd Dec 2016 10:59pm
Daft funny joke
by venice
2nd Dec 2016 5:54pm
We dont learn much.
by venice
1st Dec 2016 9:22pm
Freegle
by venice
1st Dec 2016 6:36pm
New Wirral History
Cowhouses
by Norton
Yesterday at 03:34 PM
Name help
by Paternoster21
3rd Dec 2016 8:03am
HMT Lancastria
by granny
2nd Dec 2016 11:38pm
Cubitts Holland and Hannen
by fish5133
27th Nov 2016 5:38pm
Fire station
by chris7777
22nd Nov 2016 12:24pm
Forum Tips
Photo Gallery Forums
fireworks on the Mersey last night
Hadlow train station
Topic Replies
Cowhouses
by fish5133
Today at 02:23 AM
Virgin broadband
by fish5133
Today at 02:18 AM
Iphone 5s, Grey, near mint condition, 50
by _Steve_
Yesterday at 09:59 PM
Merseyrail
by TheComputerLab
Yesterday at 09:14 PM
Steel frame with wheels
by anniebo28
Yesterday at 08:06 PM
Mountain bike carrera Vulcan 100 excellent cond
by TheComputerLab
Yesterday at 03:57 PM
Offline Monday
by Mark
Yesterday at 12:13 PM
Anyone Read Chinese Writing
by Tranquil
Yesterday at 01:44 AM
Talk Talk Security Breach
by eddtheduck
9th Dec 2016 10:46pm
December
M Tu W Th F Sa Su
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31
Recent Posts : What's On ?
Wirral TUC Meeting re Update on Wallasey CLP Suspe
by RUDEBOX
30th Nov 2016 9:16pm
World Aids Day Event 2016. Liverpool
by RUDEBOX
30th Nov 2016 9:05pm
Topic Options
Rate This Topic
#298027 - 5th Mar 2009 10:10pm 250bn Lloyds asset deal on cards
_jase_
Unregistered



250bn Lloyds asset deal on cards


Lloyds Banking Group is close to a deal with the government for a 250bn asset insurance scheme, the BBC has learned.

The agreement could mean the taxpayer's share in the bank increasing to 60% from its current level of 43%, according to sources at the Treasury.

It is understood the deal has not yet been finalised and is unlikely before Friday afternoon.

The plan would mean the government insuring up to 250bn of assets which would be paid for in non-voting shares.

It would also mean the bank swapping some of the government's existing non-voting shares for ordinary shares - thus taking the government's overall stake up to 60%.

The deal is part of the Treasury's taxpayer-backed scheme to insure banks' riskiest assets against further losses.

Confidence

It was put forward by Chancellor Alistair Darling in a bid to restore confidence in the banking sector.

RBS was the first bank to sign up, announcing last month that it would put in 325bn of toxic assets.

BBC Political Correspondent Carole Walker said some politicians believed full nationalisation would restore confidence in the banks more quickly.

"There are a number of people in Westminster who believe we are getting closer and closer to full nationalisation," she said.

"[They think] it would be simpler and easier for the government to nationalise the banks and that in the long-term it would save the taxpayer a lot of money."

Some have pointed out that the government has put more money into RBS than its total share value, she added.

THE BBC

Top
National News : Advertising
Click me for more Information......

* * * Emelec Electrical Services * * *
Now Advertise with WikiWirral.
WikiWirral stats 35,000 Page Views a Day +500 Search Engines.. Click Me
#298396 - 7th Mar 2009 11:44am Treasury takes 65% Lloyds stake [Re: ]
_jase_
Unregistered




Treasury takes 65% Lloyds stake


The taxpayer is taking a controlling share of 65% in Lloyds Banking Group, up from the previous 43%.

The government has said new lending from Lloyds will jump to 28bn in the next two years, dwarfing similar figures from Northern Rock and RBS.

The taxpayer will also insure toxic loans worth 260bn ($367bn).

The group had to turn to the government for help following its takeover of HBOS, which recently reported an annual loss of nearly 11bn ($15.5bn).

BBC business correspondent Joe Lynam said: "[The government] is absolutely imposing its writ on the banks that it now controls.

'No more dice'

"It is saying we will impose political decision-making on a bank, rather than just commercial or financial decision-making.

"Basically they're going to install their people on the board of Lloyds banking group and say, right, we're going to see 28bn is set aside for lending, " he said.

"This is the last throw of the dice before full nationalisation of Lloyds and RBS; in economic terms the government will control approaching 80%, in real voting terms, 65%, which means they can impose their will on the bank and they are already starting to do so."
The Treasury Minister, Stephen Timms, spelt out what the deal involved.

He told the BBC the deal committed the banking group to 14bn in lending this year, of which 11bn would go to companies and 3bn for mortgages.

There would then be a similar commitment next year, he said.

Mr Timms said: "It's a very important announcement. It provides new certainty for Lloyds enabling it to commit new lending into the economy.

"Lloyds will bare the initial loss on the assets being insured up to 25bn. It will pay a commercial fee of 16bn for participating in the scheme."

However Mr Timms admitted the government did not know how much of the total losses would be borne by the tax payer.

No way out

Asked about speculation that the taxpayer could lose up to 100bn on the deal, Mr Timms replied: "Precedents would suggest that the loss would be a great deal less than that but as I said we just don't know."

The Liberal Democrat treasury spokesman, Vince Cable, said the government now had to make sure Lloyds Banking Group made good on its commitment.

Mr Cable told the BBC: "The government can't now just sit back as it has with the other banks that it's taken over and just watch them.

"It has to make sure that they are run in the national interest - to make sure for example that they do make lending available to sound borrowers, particularly to companies which are not able to keep going because they can't get working capital."

Mr Timms said the deal meant the bank now had a "legally binding commitment" to fulfil its obligations on public lending.

Hugh Pym, BBC chief economics correspondent said the deal, which was agreed on Friday night, would be "very awkward" for the Lloyds chief executive Eric Daniels and chairman Victor Blank.

They have come increasingly under fire from shareholders for their decision to buy rival HBOS.

It was the January takeover of HBOS - a move that was supported by the government - that has caused the problems at Lloyds.

Lloyds was forced to announced last week that HBOS made a pre-tax loss of 10.8bn in 2008, which it has had to absorb.

By contrast, Lloyds, or Lloyds TSB as it was then known, made a profit of 807m last year, albeit an 80% fall on 2007.

The 260bn insurance deal is part of the Treasury's taxpayer-backed Asset Protection Scheme to insure banks' riskiest assets against further losses.

Restore confidence

The scheme was put forward by Chancellor Alistair Darling in a bid to restore confidence in the banking sector.

Royal Bank of Scotland was the first bank to sign up, announcing last month that it would ask the government to insure 325bn worth of so-called toxic assets, which are difficult to value and currently cannot be sold.

BBC political correspondent Carole Walker said there were now many people in Westminster who believed that full nationalisation of the banks would restore confidence in the sector more quickly than the Asset Protection Scheme.

"[They think] it would be simpler and easier for the government to nationalise the banks, and that in the long-term it would save the taxpayer a lot of money," she said.

Some have pointed out that the government has put more money into RBS than its total share value, she added.

THE BBC

Top

Moderator:  Mod 
Random Wirral Images

Click to View Topic.
Newest Topics
Virgin broadband
by corona
Yesterday at 05:20 PM
Cowhouses
by Norton
Yesterday at 03:34 PM
Merseyrail
by ambersmum
Yesterday at 02:52 PM
Offline Monday
by Mark
Yesterday at 12:13 PM
Anyone Read Chinese Writing
by Tranquil
9th Dec 2016 3:47pm
For Sale & Free
Steel frame with wheels
by anniebo28
Yesterday at 08:06 PM
Mountain bike carrera Vulcan 100 excellent cond
by TheComputerLab
Yesterday at 03:57 PM
Micro desktop PC
by anniebo28
8th Dec 2016 2:24pm
Iphone 5s, Grey, near mint condition, 50
by anniebo28
7th Dec 2016 7:40pm
Roberts Concerto 2 CD Player For Visually Impaired
by Tranquil
6th Dec 2016 10:05pm
Featured Member
Registered: 20th Feb 2015
Posts: 47
Newest Members
lucyw, BarbaraL, SherryLover, missyb, DavidSharpe
12137 Registered Users
Today's Birthdays
No Birthdays
New Wirral Info
Anyone Read Chinese Writing
by Tranquil
9th Dec 2016 3:47pm
Gymnastics coaches needed.
by margy
3rd Dec 2016 9:28pm
Wirral Globe
by locomotive
1st Dec 2016 6:25pm
Wirral TUC Meeting re Update on Wallasey CLP Suspe
by RUDEBOX
30th Nov 2016 9:16pm
World Aids Day Event 2016. Liverpool
by RUDEBOX
30th Nov 2016 9:05pm
News : New Topics
Geert Wilders
by fish5133
9th Dec 2016 2:44pm
RIP Peter Vaughan
by diggingdeeper
7th Dec 2016 4:22am
That was kept a bit quiet?
by venice
6th Dec 2016 11:25am
Another tree down on Arrowe park Road?
by Davefabo
6th Dec 2016 11:08am
Bunchems Xmas present warning
by venice
6th Dec 2016 9:28am
New Enthusiast Forums
Virgin broadband
by corona
Yesterday at 05:20 PM
Talk Talk Security Breach
by fish5133
7th Dec 2016 6:19pm
Mobile mechanic needed to fit a wishbone
by anniebo28
6th Dec 2016 7:13pm
Vet help
by colin86
6th Dec 2016 6:25pm
Game shocking prices!!!
by eddtheduck
5th Dec 2016 4:55pm
(Views 24hrs)Trending Newest Topics
Cowhouses 161
Virgin broadband 140
Steel frame with wheels 44
Merseyrail 28
Offline Monday 18
Wirral Sunrise Sunset
Sunrise Sun 8:19am
Sunset Sun 3:52pm
Local Time Sun 5:49am
WikiWirral Can . . . .