UK Government Cuts Stake in Lloyds Banking Group to 5.95% -- Update
January 09 2017 - 5:31AM
Dow Jones News
By Margot Patrick
LONDON--The U.K. government is no longer the largest shareholder
in Lloyds Banking Group PLC (LLOY.LN) after cutting its stake below
6% Friday.
The Treasury, which gave Lloyds GBP20 billion in emergency
capital in 2008 and 2009 said on Monday it has gotten GBP18 billion
back so far through share sales in the bank and should recover the
total. Blackrock Inc. is Lloyds Banking Group's biggest shareholder
now, with around 6.3% according to filings.
At the height of its bailout, Lloyds--Britain's biggest retail
lender by assets--was 43% government owned. The part ownership came
with political strings attached. Lloyds abandoned its global
ambitions and recast itself as a safe domestic bank for households
and business.
Putting it back into private hands has ended up taking years
longer than initially expected, as legal and regulatory penalties
stacked up at the bank and weighed on profits. The government
started selling its shares in the bank in late 2013.
All money raised from the sales are used to reduce the national
debt. The government still owns 73% of Royal Bank of Scotland Group
PLC, with the shares currently worth less than half of the price
paid.
Write to Margot Patrick at margot.patrick@wsj.com
(END) Dow Jones Newswires
January 09, 2017 05:16 ET (10:16 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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