Discussion
From the Times
"Lloyds Banking Group is locked in a row with the Treasury over how much it is prepared to pay to place £250 billion of assets into the Government’s toxic debt insurance scheme.
The Times has learnt that the Treasury and Lloyds were in talks until the early hours of this morning but failed to reach an agreement over how much in fees the bank will pay the Government to underwrite billions of pounds worth of the lender's toxic losses.
It is understood that the Treasury is asking Lloyds, which is 43 per cent owned by the taxpayer, to pay three percentage points more in fees than the bank is prepared to spend."
http://business.timesonline.co.uk/tol/business/ind...
Why is there any negotiation? The government can simply dictate the terms and tell Lloyds to like it or lump it. If they don't accept the terms they will find themselves being nationalised in a short period of time.
"Lloyds Banking Group is locked in a row with the Treasury over how much it is prepared to pay to place £250 billion of assets into the Government’s toxic debt insurance scheme.
The Times has learnt that the Treasury and Lloyds were in talks until the early hours of this morning but failed to reach an agreement over how much in fees the bank will pay the Government to underwrite billions of pounds worth of the lender's toxic losses.
It is understood that the Treasury is asking Lloyds, which is 43 per cent owned by the taxpayer, to pay three percentage points more in fees than the bank is prepared to spend."
http://business.timesonline.co.uk/tol/business/ind...
Why is there any negotiation? The government can simply dictate the terms and tell Lloyds to like it or lump it. If they don't accept the terms they will find themselves being nationalised in a short period of time.
Fittster said:
From the Times
"Lloyds Banking Group is locked in a row with the Treasury over how much it is prepared to pay to place £250 billion of assets into the Government’s toxic debt insurance scheme.
The Times has learnt that the Treasury and Lloyds were in talks until the early hours of this morning but failed to reach an agreement over how much in fees the bank will pay the Government to underwrite billions of pounds worth of the lender's toxic losses.
It is understood that the Treasury is asking Lloyds, which is 43 per cent owned by the taxpayer, to pay three percentage points more in fees than the bank is prepared to spend."
http://business.timesonline.co.uk/tol/business/ind...
Why is there any negotiation? The government can simply dictate the terms and tell Lloyds to like it or lump it. If they don't accept the terms they will find themselves being nationalised in a short period of time.
It makes perfect sense that a business make the best deal it can for itself."Lloyds Banking Group is locked in a row with the Treasury over how much it is prepared to pay to place £250 billion of assets into the Government’s toxic debt insurance scheme.
The Times has learnt that the Treasury and Lloyds were in talks until the early hours of this morning but failed to reach an agreement over how much in fees the bank will pay the Government to underwrite billions of pounds worth of the lender's toxic losses.
It is understood that the Treasury is asking Lloyds, which is 43 per cent owned by the taxpayer, to pay three percentage points more in fees than the bank is prepared to spend."
http://business.timesonline.co.uk/tol/business/ind...
Why is there any negotiation? The government can simply dictate the terms and tell Lloyds to like it or lump it. If they don't accept the terms they will find themselves being nationalised in a short period of time.
The fact that the UK taxpayer owns a chunk makes no difference... in fact as i am now a shareholder of LLoyds i want the best deal for them, because it is me afterall who is underwriting this debt.
I, the taxpayer get shafted either way with the costs should they arise. Lets keep unnecessary wastage to a minimum and that includes fee's wasted to the treasury.
bluevelvet said:
didn't lloyds actually help the Govt out by taking on HBOS?....LLoyds would certainly be in much better shape if they were independent, it seems hard to believe they knew the full extent of the HBOS loan portfolio and other financials and still went ahead with the integration.
It's my understanding the Government said "If anyone wants HBOS there won't be any competition questions asked". Lloyds thought "What an opportunity to expand and leaped before they looked".Can't really blame the Government for that one.
bluevelvet said:
Thankyou for clarifying that Fittster, so anyone could have taken HBOS on and no assistance was implied from the Govt,,,good to knew, I will alert our M&A department in case such opportunities come up again, they clearly missed this one.
Well looking at how well banks have performed over the last few years I wouldn't put to much faith in any of their departments.What info do you have of the deal between Lloyds and the Government to carve up HBOS?
bluevelvet said:
didn't lloyds actually help the Govt out by taking on HBOS?....LLoyds would certainly be in much better shape if they were independent, it seems hard to believe they knew the full extent of the HBOS loan portfolio and other financials and still went ahead with the integration.
I think he has a point. I for one doubt Lloyds TSB are going to simply roll over and accept whatever the Government tells them to, after all that blind approach is exactly what led them to this poor chain of events in the first place.Forums | The Pie & Piston Archive | Top of Page | What's New | My Stuff