Lloyds mulls huge rights issue
LONDON: Part-nationalised Lloyds Banking Group is considering a 15 billion pound rights issue, according to a Financial Times (FT) report.
The Financial Services Authority watchdog is currently scrutinising the plan, under which Lloyds could also sell assets and shrink its balance sheet, the paper said, quoting unnamed people close to the deal.
If it goes ahead, the move -- which the FT said was supported by the government, owner of a 43.5 percent stake in Lloyds -- would be the biggest ever rights issue in Britain.
Last month, Lloyds said it was considering alternatives to the Government Asset Protection Scheme (GAPS), which provides guarantees for risky assets, following stress tests.
In response to the report, Lloyds Banking Group told the FT that it had nothing to add to that statement.