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Lloyds Asset Insurance Talks Ongoing -uk Govt Source


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HOLA441

More money spent by the BOE

http://uk.reuters.com/article/hotStocksNew...515404220090305

LONDON, March 5 (Reuters) - The British government and Lloyds Banking Group (LLOY.L) are still discussing the terms of the bank's participation in the Asset Protection Scheme, a Treasury source told Reuters on Thursday.

"We are keen to get a resolution as soon as possible," the source said.

No decision is expected early on Friday, but an announcement could still come in the afternoon or talks could last through the weekend. Analysts expect Lloyds to place about 250 billion pounds' ($353.6 billion) worth of its riskiest assets into the scheme to insure against future losses.

Last week, Royal Bank of Scotland (RBS.L) insured 325 billion pounds' worth of assets, paying for the cover with non-voting shares.

The government already owns 43 percent of Lloyds and a similar deal to that arranged with RBS could see the state's economic stake in Lloyds rising above 50 percent.

Edited by Yorkshire Lad
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