Breakingviews

Escaping the state should cost Lloyds

October 14, 2009

Lloyds Banking Group may yet succeed in getting out of jail. But breaking free from the British government's insurance scheme for toxic assets should not be cheap. True, details of the scheme were never finalised. But Lloyds - and its shareholders - have benefited from the promise of state support. Ministers are right to insist that it pays up.

Lloyds’ great escape still a stretch

October 8, 2009

Having failed to escape from the British government's insurance scheme for bad assets, Lloyds Banking Group is trying again. To achieve its goal, the British bank would probably need to raise in the region of 25 billion pounds through share issues and asset sales. Given the complexities involved, that looks a stretch.