Not sure the chart is really much help atm.

?

http://www.bbc.co.uk/news/business-15090761

NBNK bids 1.5bn for Lloyds branches despite cost of credit




20:54, Wednesday 28 September 2011

Lloyds Banking Group (LSE: LLOY.L - news) 's attempt to drum up a competitive auction for its 632 branches has been dealt a blow by a sharp increase in the cost of the credit line it has pledged to provide bidders.

As the September 28 deadline for offers passed on Wednesday, only NBNK tabled an indicative bid of around 1.5bn. Its (Paris: FR0010370163 - news) rivals, Co-operative Financial Services and investment firm Sun Capital, are thought to be struggling with a sudden rise in the cost of the 10bn to 15bn of wholesale funding needed to complete the deal.

NBNK, the start-up chaired by Lord Levene and led by former Northern Rock chief executive Gary Hoffman, is expected to confirm its approach on Thursday. Lloyds is selling 632 branches, its TSB (KOSDAQ: 045340.KQ - news) and Intelligence Finance brands, 64bn of loans and 32bn of deposits. The disposal was required by Brussels as a condition of receiving 20bn of state aid during the financial crisis.

None of the potential bidders is believed to be interested in the full loan book due to the vast 32bn "funding gap" between deposits and loans. Instead, they are after a smaller portfolio worth 46bn to 47bn.

To close the gap further, Lloyds has committed to inject another 5bn of deposits by 2013 into the businesses being sold, known as "Project Verde". It also intends to provide bidders a three-year funding line, backed by Citi and JP Morgan, to make up the 10bn shortfall.

Bid preparations, though, have been thrown into disarray by the price of the funding. The credit line was originally priced at 150 basis points over Libor, but the banks have increased the rate due to the recent market panic. At the same time, Libor has also risen. The increase in the cost is believed to be more than 50m 10pc of the annual profits Lloyds estimates Verde is making.

There are also questions about whether the Financial Services Authority (FSA) will allow a new bank to operate with just three years of funding in place for a quarter of the loan book. Insiders suggested Lloyds will either have to add more deposits to Verde or provide backstop funding itself.

Both the Co-op and Sun, which is backed by entrepreneur Hugh Osmond, are believed to remain interested and are reviewing their options. Lloyds, which may also float Verde, is keen to offer NBNK some competition and is keeping the door open.

NBNK's 1.5bn bid would mean the 41pc-state-backed bank making a loss, as Lloyds values Verde at about 2.3bn. However, NBNK would have to inject a further 1bn in capital to meet FSA rules.

well picked up dc - this has been in the air for a little while now - gl

Lets see what happens tomorrow

Dow down 180 points tonight expect Lloyds to be market down.

Bank transaction tax proposed by Eurozone. Kneejerk reaction tomorrow perhaps?

Harry only if it is adopted universely, and in any case it would be passed onto customers.

Hmmmm.

RNS Number : 1531P

NBNK Investments PLC

29 September 2011

NBNK Investments Plc

("NBNK" or "the Company")

Lloyds Banking Group divestment

The Company notes the recent press speculation concerning its participation in Lloyds Banking Group's process for the sale of the "Project Verde" asset package.

NBNK was formed for the purpose of making acquisitions in order to establish a significant UK retail bank and confirms that it has submitted a bid for Verde.

There can be no certainty that a transaction will be completed nor as to the terms of any transaction.

Further announcements will be made as appropriate.

- Ends -

i am looking to buy now the bank is now making profits and all the W/D
are over , div return in 2012

You like bank shares eh Tank.

yes i see my future in profits as banks are to cheap .
when this jump they wil jump and you will not get in .
one morning soon at 8am they wil be up

Good luck.

off subject i wish to thank BARONESS FLATHER for speaking out .
it is good to no that she is for our country .which like myself she loves

Evolution Securities downgrades Lloyds Banking Group from buy to neutral, target price unchanged at 50p.

greece is bust no money so let it fall and let its people decide its fate .
if the rich greeks put 10% of there money into greece it would solve there problem
but they all live in monaco

i also think that the gov should put up income tax here to 22p and 42p to
pay for our nhs and police and army not cut them

No sympathy for Greeks most have dodged paying any tax for years, The EU must walk away from this one.