any one got a feelling in their water how far LLoyds will go looking to to buy but just dont know when they are low enough

EU To Make A Final Decision On Lloyds In Coming Weeks


BRUSSELS -(Dow Jones)- European Commission competition authorities hope to make a decision on Lloyds Banking Group PLC (LLOY.LN) restructuring plans in the coming weeks, a commission spokesman said Friday.

The commission has made "good progress" on its talks with Lloyds over the restructuring deal and "hope to take a decision in the next coming weeks," Jonathan Todd, the commission's competition spokesman said.

Lloyds is about to launch a multi billion-pound rights issue as part of efforts to exit the U.K. government bailout program it agreed to participate in last spring, when the banking sector was in crisis. The bank also hopes fresh capital will help limit any divestments it might have to make as part of its restructuring plan.

Under the rights issue, the U.K. government, which owns 43% of Lloyds, would have to invest around an additional GBP5 billion in Lloyds to keep its stake intact.

The U.K. government has so far given Lloyds some GBP17 billion in state aid, including money invested in HBOS PLC (HBOS-LN), which Lloyds later acquired.

Talks on another U.K. bank which also needs to have its restructuring plan approved by the commission, Royal Bank of Scotland Group (RBS), are ongoing Todd said.

UPDATE: UK To Announce Lloyds, RBS Revamps Tuesday - Government Source





By Margot Patrick
Of DOW JONES NEWSWIRES

LONDON -(Dow Jones)- Sweeping plans to recapitalize and restructure Royal Bank of Scotland Group PLC (RBS) and Lloyds Banking Group PLC (LYG) are to be announced by the U.K. government Tuesday, a person familiar with the matter said Monday, in a series of measures that will shake up the nation's banking sector and nearly double taxpayers' exposure to the two banks rescued from potential collapse a year ago.

The plans are expected to include RBS issuing about GBP19 billion in new shares, raising the government's stake above 80%, from 70%. Lloyds will launch a roughly GBP13 billion rights issue the government will subscribe to for about GBP5.5 billion, keeping its 43.5% stake intact.

The government will also agree to insure a GBP280 billion book comprising some of RBS' riskiest loans and investments, people familiar with the matter say, though RBS will be on the hook for a larger chunk--about GBP60 billion--of any initial losses than when the insurance program was first agreed in February. Additional shares could be issued to pay annual fees for the policy, to total around GBP6.5 billion in all.

Lloyds, meanwhile, will side step its own March plan for a similar government insurance policy, a person familiar with the matter said, instead paying about GBP2.5 billion to the government as a sort of "break fee" for having provided it with backstop support since then.

The moves mean government support for the two banks could rise above GBP63 billion, though the final structure of the deals, and any payout on the RBS assets will determine the ultimate figure.

U.K. banks were some of the hardest hit by market turmoil last year, as investors lost confidence in their ability to withstand a prolonged recession and liquidity dried up.

The government in October 2008 invested GBP20 billion into RBS and GBP17 billion in Lloyds to help them keep lending to businesses and home buyers and make it through the then-deepening financial crisis. Lloyds later paid back about GBP2.3 billion.

Last week, the U.K. Treasury agreed to put as much as GBP12 billion in new money into Northern Rock PLC, the mortgage lender it nationalized in Feb. 2008 and which already has a GBP15 billion loan outstanding. Other government commitments in the banking sector include a GBP18.4 billion loan to fund the nationalized portion of lender Bradford & Bingley, whose mortgage book is being wound down by the state.

The massive state aid meant the U.K. had to lay out to the European Union how the banks could be restructured to ensure their long-term viability, a process that involved bashing out what disposals the banks would have to make to keep the U.K. banking sector competitive.

RBS earlier Monday said it will have to make more divestments than initially thought. Previously it had said it would have to reduce its market share in lending to small businesses. Lloyds, however, Thursday said it doesn't expect disposals to have a material impact on its business.

The two banks have hefty market share in a number of key areas, including RBS controlling about 20% of lending to small businesses, and Lloyds holding about 30% of both the current account and mortgage markets after its merger in January with HBOS PLC.

Lloyds' merger with HBOS was pushed through by the government as the bail-out money was handed out last October. Chancellor Alistair Darling on Sunday said breaking up Lloyds, RBS and Northern Rock will help create three new lenders by 2013, boosting competition.

Tuesday's announcement is to come as the U.K. prepares to host meetings of G20 finance ministers and central bankers in Scotland this coming weekend. The U.K. is keen to show it is serious about reforming its financial sector and is urging other nations to move quickly to shore up their banks to face remaining challenges from the financial crisis.

-By Margot Patrick, Dow Jones Newswires; +44 (0)20 7842 9451; margot.patrick@dowjones.com

Govt announcement on banks.

Lloyds Banking Continued To Deliver Good Revenue In 3Q





LONDON -(Dow Jones)- Lloyds Banking Group PLC (LLOY.LN), the U.K. bank that is partly owned by the U.K. Government, said Tuesday that it continued to deliver a good revenue performance in the third quarter of 2009, with similar trends, excluding gains on liability management transactions, to those delivered in the first half of the year.

MAIN FACTS:

-Banking net interest margin has shown clear signs of stabilising and was flat in the third quarter of 2009, compared to the first half of the year.

-Costs in the nine months to Sept. 30 were 2% lower than in the equivalent prior period.

-Excellent progress has continued to be made on the integration of the enlarged Group, with the achievement of GBP50 million higher run-rate cost synergies than those previously announced.

-The run-rate of overall impairments has slowed in the third quarter of the year; Continues to expect impairments to fall significantly in the second half of 2009, compared to the first half of the year.

-Continues to expect the Group to report a loss before tax for 2009, excluding the impact of the GBP11.2 billion credit relating to negative goodwill.

-Core relationship businesses have, once again, performed well with good revenue growth, as margins begin to stabilise, and achieved a strong cost performance.

Lloyds Banking Group David Manning To Step Down

LONDON -(Dow Jones)- Lloyds Banking Group PLC (LLOY.LN), the U.K. Bank that is partly owned by the Government, said Tuesday that Sir David Manning has informed the Group of his intention to step down from the Board with immediate effect.

both LLOY and RBS "agreeing" to sell part of retail networks (+other bits) off to appease the EU. Both probably around 5% of mkt share, so look forward to seeing some Tesco banks on the high street, and likely beardy branson shops too. Both will look to pick these up on the cheap, and then undercut the established players to nick the better customers. Look forward to getting 5 off your mortgate every month, and another 20p on your savings account. In the meantime , the 20k odd per head the govt has stuffed into the 2 big banks (i.e we as taxpayers have invested! ) will be at risk as their profits come under pressure from the new entrants.

Surely the govt can see the best way to get back some serious dosh is to let LLOY and RBS make a load of money in the next few years (as they have started to do now); let the shareprices recover 5-fold, then sell the shares they / we own. Job done, budget deficit sorted.

At least the incumbents have got 4 years to organise the sales! Hopefully they will drag their feet.

Publication of Prospectus.

Repurchase and Cancellation of Preference Shares






TIDMLLOY

RNS Number : 3471E
Lloyds Banking Group PLC
18 December 2009

?

18 December 2009

Repurchase and Cancellation of Preference Shares
As described in its previous announcement on 14 December 2009, Lloyds Banking
Group plc ("Lloyds Banking Group") has now settled the exchanges described in
that announcement. Pursuant to these exchanges, on 17 December 2009, Lloyds
Banking Group repurchased for cancellation (i) 15,400 preference shares
(representing U.S.$15,400,000 in liquidation preference) of its U.S.$750,000,000
6.413 per cent. Non-Cumulative Fixed to Floating Rate Preference Shares (ISIN:
GB00B3KSBH82) leaving 374,810 preference shares (representing U.S.$ 374,810,000
in liquidation preference) outstanding; (ii) 183,610 preference shares
(representing U.S.$183,610,000 in liquidation preference) of its
U.S.$750,000,000 5.92 per cent. Non-Cumulative Fixed to Floating Rate Preference
Shares (ISIN: GB00B3KSBJ07) leaving 371,933 preference shares (representing
U.S.$371,933,000 in liquidation preference) outstanding; (iii) 62,808 preference
shares (representing U.S.$62,808,000 in liquidation preference) of its
U.S.$750,000,000 6.657 per cent. Non-Cumulative Fixed to Floating Rate
Preference Shares (ISIN: GB00B3KSBK12) leaving 434,350 preference shares
(representing U.S.$434,350,000 in liquidation preference) outstanding; and (iv)
14,840 preference shares (representing U.S.$14,840,000 in liquidation
preference) of its U.S.$1,000,000,000 6.267 per cent. Non-Cumulative Fixed to
Floating Rate Preference Shares (ISIN: XS0460002693) leaving 533,618 preference
shares (representing U.S.$533,618,000 in liquidation preference) outstanding.

- END -

Dead Donkey - need say no more !

Bank shares fall on fears over new regulations

Global banking stocks have fallen on concerns that banks will have to maintain significantly more funds in reserve from 2012.

UK banking sector 'significantly more stable'

The UK's financial system has become "significantly more stable over the past six months", the Bank of England has reported.

It said the situation had improved on the back of its efforts to assist the sector, such as its quantitative easing (QE) programme and 0.5% interest rates.