- Americans Ditch Planes for Trains this Thanksgiving
- Half of Banks' Losses May Still Be Hidden: IMF Head
- Obama Reiterates Commitment to Boost US-India Ties
- FDIC's Bair Cautions on Risks in Bank Break-Up Plan
- Wednesday's Economic News Crunch Could Tilt Markets
- Call Me Crazy: Confessions of a Black Friday Shopper
- Starbucks Eyes China as Next Major Market
- Citi Mortgage Reveals Something the US Treasury Won't
- Holiday Guide to This Season's Smartphones
- Citi Mortgage Reveals What Treasury Won't
- S&P to Hit 1,200 by Year-End: Chief Investor
- Amended Berkshire Hathaway Filing Indicates No Secret Stock Stakes at End of Q3
- Facebook's Biggest-Ever Holiday Shopping Season
- Facebook's New Dual Class Structure - Slow Steps to an IPO
- 5 Big Bank Stocks Investors Should Consider: Strategists
- Gambling Drunk, Texting to Live And America's On Sale - Your Emails
- Nov. 24: Unusual Volume Leaders
- NBA D-League On The Rise
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Wednesday's Economic News Crunch Could Tilt Markets
- Obama Reiterates Commitment to Boost US-India Ties
- The Social Media Gaming Threat
- NBA D-League On The Rise
- Japan Export Rebound Eases Fear of New Recession
- Stifling Anger at Work Can Kill, Survey Finds
- Australia Wheat Exporters Face Challenges: GrainCorp
Text Size 
Lloyds Banking Group's shares fell 4 percent Monday, dragging down the FTSE, after reports in the UK press that it was considering a share issue to try and loosen the government's grip.
A Lloyds [LLOY-LN Loading... ()] spokesperson contacted by CNBC refused to comment on the reports.
The bank, which merged with crisis-hit HBOS last week, may consider a multi-billion pound share issue as part of a partial withdrawal from the government's asset protection scheme, the Sunday Times reported.
Chief executive Eric Daniels is reported to think that the fees attached to the taxpayer-backed insurance policy are too high, and give too much control to the government it added.
 |
Sharon Lorimer |
Following the group's results on Wednesday, industry sources said Lloyds may consider launching a rights issue to scale back its involvement in the scheme but the speculation was vague and had no details.
Analysts agreed that Lloyds may now be in a stronger position to consider alternatives to the scheme following its results.
"Given the overall cost of the APS (15.6 billion pounds insurance premium...) it bears considering whether LBG should look at reducing the extent of its participation in the scheme," said analysts at Deutsche Bank.
Lloyds said in a statement that it is "working with the treasury to finalise the detailed terms of our intended participation in the asset protection scheme".
"We expect to conclude these discussions and agree terms that are in the best interest of our shareholders," the group added in an email.
- Remember when auto shows were major events where new models could generate buzz?
- CNBC’s Mike Huckman visits a cutting-edge plant to see how the flu vaccine of the future is being made.
- People who bottle up their anger at work are up to five times more likely to suffer a heart attack, a study found.
- Playboy will outsource its publishing operations in a bid to become profitable again.
- A new McDonald's in Manhattan is the nation's first to sport a sleek, chic interior imported from stores in London and Paris.
- For nearly three decades, these on-call experts have been dishing advice on how to – and not to – cook turkey.
Data is a real-time snapshot *Data is delayed at least 15 minutes