Lloyds say it is considering fundraising options (October 29, 2009)
Lloyds Banking Group PLC is now 43% owned (bailed out) by the British Government. Lloyds are now announcing that they are looking to find other ways of raising funds so that they can avoid using the state insurance to cover their bad assets.
This may appear that they are trying to be less of a burden on the taxpayer but if they were to go through with the plans (they are currently in advanced talks with the Government about this) of using state insurance to cover £260billion of assets it would mean that the Government would gain a 60% share of the business. Something Lloyds are in talks with the Government to get out of.
We’ve heard similar before but having the bank cover its own bad assets seems preferable to the Government and by extension the taxpayer covering it.
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