Lloyds Hands Over Bigger Stake to UK
March 7, 2009 by Stephen Kersey
Filed under Business
Although the economic times in the United States are rough, there are many other countries in a similar boat. Lloyds Banking Group, one of the United Kingdom’s three biggest banks, is receiving nearly $370 billion in asset insurance. In exchange, the bank will hand over a substantial stake in the company to the government.
Lloyds Bank - Source: Flickr
When the transaction is complete, it is estimated that the UK government will own up to an 80% stake in Lloyds. As a condition of the deal, the bank must lend more than $35 billion dollars between now and 2011.
The United Kingdom is taking these measures to make sure that Lloyds survives this current global economic crisis. If Lloyds were to fail, industry experts believe that it could cause the UK financial system to come to a screeching halt.
Lloyds Banking Group was created earlier in the year when Lloyds TSB purchased HBOS. Located in the city of London, the company’s history can be traced back to1765 when Lloyds Bank was formed.
Source: Wire Reports
