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.
Continue reading below
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 |
