The U.K. government already owns 58% of Royal Bank of Scotland Group plc. Now it will be the proud parent of another desperate orphan of sorts, taking a 43.4% stake in Lloyds Banking Group. The company is the enlarged parent that will eventually own the merged Lloyds TSB Group plc and HBOS plc.
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The British government stepped in to supply £17 billion ($25 billion) because investors in Lloyds and its takeover target HBOS shunned a pair of rights issues. The infusion of new capital will help to safeguard the new financial institution against "potential further losses on risky credit-related assets, as well as an anticipated rise in bad debts this year as the U.K. succumbs to recession," according to Reuters. - Gerald Magpily
Troubled International banks
Prices at 11:00 an EDT |
| Name |
Open |
11 am price |
Change |
Market cap |
| UBS AG (USA) |
14.3 |
14.29 |
-0.63 |
40.54.79 |
| Barclays PLC |
177 |
189.9 |
10.9 |
15.89.11 |
| BNP Paribas SA |
33.98 |
34.49 |
0.43 |
30.86.5 |
| ING Groep N.V. |
28.22 |
28.22 |
-0.83 |
120.84 |
| Deutsche Bank AG (USA) |
33.14 |
32.53 |
0.35 |
17.75.62 |
| Royal Bank of Scotland Group plc (ADR) |
16.69 |
16.42 |
0.26 |
32.39.38 |
| Royal Bank of Canada |
36.55 |
36.06 |
-0.75 |
48.28.39 |
| HSBC Holdings plc |
630 |
640.25 |
11.75 |
77.50.96 |
| Lloyds TSB Group |
131.1 |
143.5 |
12 |
12.41.53 |
| Standard Chartered PLC |
875 |
878.5 |
13 |
16.65.53 |
| Toronto-Dominion Bank |
45.67 |
45.7 |
-0.3 |
38.66.38 |
| Mitsubishi UFJ Financial Group Inc (ADR) |
6.01 |
6.03 |
-0.09 |
69.75.93 |
Source: TheDeal, Google Finance |