Monday, February 16, 2009
Nothing is ruled out
Lloyds Banking Group suffered another blow on Monday when it lost its long-held Aaa credit rating from Moody’s amid continued worries about accelerating losses from HBOS. Gordon Brown on Monday sought to damp speculation that Lloyds was set to come under majority public ownership. The prime minister’s spokesman stated: “While nothing is ruled out, no active consideration is being given to the nationalisation of Lloyds.” Peter Mandelson, business secretary, will on Tuesday argue in a speech in New York that the government is caught in the “politically difficult but economically necessary” position of having to take time to get its handling of the banking crisis right, while facing demands for instant results.