Lloyds and RBS cut down to size

[Blue_Tires]

Source: BBC

Royal Bank of Scotland (RBS) and Lloyds Banking Group are to sell off hundreds of branches in another major shake-up of the UK banking industry.

The sales have been demanded by the European Commission to safeguard competition concerns after the two were bailed out by the UK government.

RBS will sell 318 branches, while Lloyds will dispose of more than 600 branches over the next four years.

The Conservatives said another £40bn was being added to the bail-out.

Lloyds, which is 43.5% owned by the government, also confirmed it would stay out of a government-run insurance scheme and would instead raise £21bn, including a £13.5bn rights issue.

But it will have to pay the UK government £2.5bn to avoid joining the Government Asset Protection Scheme (Gaps), which provides state insurance for past toxic loans.

The payment is to cover the "implicit protection" provided by the government since it first offered to insure Lloyds' book in February.

RBS, meanwhile, has confirmed it will join the scheme on revised - and more expensive - terms, the Treasury said.





Read more: http://news.bbc.co.uk/2/hi/business/8339371.stm

[Blue_Tires]

1. ttt

[No Elephants]

2. Meanwhile, our House works on a bill that will protect derivatives and

allow institutions to get even "too bigger" to fail. This went on while we were focusing on health care. Once that came to light, Barney Frank got a lot of flak and pledged to re-work the bill. But, why the hell was he trying to protect them until he got flak? http://www.boston.com/news/politics/politicalintelligence/2009/11/frank_says_he_w.html

This is OUR guy folks, the one we count on to check these guys. Wonder how soon our next bailout will be?

This is the same guy who gave the credit card companies so much time before new laws go into effect that they have been able to raise rates and cut credit lines for no reason while raising rates and continue to be able to do that. He later said that was a mistake. Seriously, he couldn't see that coming when he gave them all that time?

I used to love Barney.

IMO, while we focused on wedge issues (very important issue, to be sure), the Republicrats and the Demlicans had a Vulcan mind meld.