View more on these topics

Lloyds gets £15bn backing for branch sale

JP Morgan and Citigroup are providing a £15bn loan to Lloyds Banking Group after being appointed as joint advisers on the sale of 600 Lloyds branches.

New chief executive Antonio Horta-Osorio sought the additional funding to speed up the sale of the branch network, which includes 185 Lloyds TSB Scotland branches and the Intelligence Finance division.

In July 2009, the European Commission ordered Lloyds to sell the branches as part of the state bailout package following the bank’s takeover of HBOS in September 2008.

The deadline for sale of the branches is November 2013.

The loan will bridge the shortfall between mortgages and customer deposits at the time the branches are sold. The branches to be offloaded make up around 5 per cent of the UK personal current accounts market.

One potential bidder is Clydesdale Bank and Yorkshire Bank parent company National Australia Group. Other potential bidders include Virgin Money and NBNK, an investment vehicle set up by former Treasury select committee chairman John McFall and Lloyd’s of London chairman Lord Levene.

Lloyds group chief executive Antonio Horta-Osorio says: “We made the decision to accelerate the start of the sale process to meet the timescales agreed with the Government and the EU.”

Recommended

1

100,000 could be better off quitting public sector DB

Up to 100,000 high-earning public sector workers could be better off opting out of generous final-salary pension arrangements as a result of Government pension tax regime reforms. Under changes announced in October last year, the annual allowance for tax-privileged pension saving will be slashed from £255,000 to £50,000 from April 2011. The lifetime allowance will […]

The Platforum appoints Emma Napier as head of adviser relations

The Platforum has appointed Emma Napier as head of adviser relations. Napier has formerly worked with Origen and most recently as Regent IFA Services chief operations officer. The Platforum managing director Holly Mackay says: “We have been seeing a dramatic increase in the number of advisers talking to us about how they pick a  platform, […]

Aifa calls for consultation to calculate FSCS refunds

Aifa has called for a Financial Services Compensation Scheme consultation on how money recouped from Norwich & Peterborough Building Society for Keydata investors should be refunded to levy-payers. N&P last week agreed to pay £57m to Keydata investors, including repayments to the FSCS for compensation that has already been paid out to N&P clients. The […]

2

Pink and BDS networks to merge

Pink Home Loans and BDS will be merged into one network under the Pink Home Loans brand. Pink, which LSL Property Services bought for £1.59m in October, acquired BDS Mortgage Services in February 2008 All advisers will now come under the Pink banner. The BDS brand will be kept as a packager, carrying out front-end […]

Craig Inches – thoughts on how to preserve capital and generate income in an inflationary environment

In this short video, Craig Inches, head of short rates and cash at Royal London Asset Management, offers his thoughts on how to preserve capital and generate income in an inflationary environment. Watch the video in full The value of investments and the income from them is not guaranteed and may go down as well […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment