This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-39932871
The article has changed 5 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Share sale set to return Lloyds to private sector | Share sale set to return Lloyds to private sector |
| (about 4 hours later) | |
| The government is set to say its remaining shares in Lloyds Banking Group have been sold eight years after pumping in £20bn to save it. | The government is set to say its remaining shares in Lloyds Banking Group have been sold eight years after pumping in £20bn to save it. |
| The sale is expected to be announced on Wednesday by UK Financial Investments, which manages the government's stake. | The sale is expected to be announced on Wednesday by UK Financial Investments, which manages the government's stake. |
| At the height of the financial crisis taxpayers owned 43% of Lloyds. | At the height of the financial crisis taxpayers owned 43% of Lloyds. |
| Its return to the private sector is in stark contrast with the other bailed-out bank - Royal Bank of Scotland - that is still 73% owned by taxpayers. | Its return to the private sector is in stark contrast with the other bailed-out bank - Royal Bank of Scotland - that is still 73% owned by taxpayers. |
| The government has been slowly selling down its stake in Lloyds for the past five years. | The government has been slowly selling down its stake in Lloyds for the past five years. |
| Ministers have claimed that all the public money used to buy Lloyds shares has been returned. | Ministers have claimed that all the public money used to buy Lloyds shares has been returned. |
| Heavy losses | Heavy losses |
| However, the true cost is disputed, with some critics claiming the lost interest has not been taken into account. | However, the true cost is disputed, with some critics claiming the lost interest has not been taken into account. |
| Others have argued that the heavy losses previously suffered by Lloyds also hit the government's stake. | |
| Either way, the £20.3bn of public funds used to buy the shares had already been recouped due to dividend payments made to all shareholders. | |
| At last week's annual meeting, Lloyds chief executive António Horta Osório told shareholders he expected the government to make at least £500m from the bailout. | At last week's annual meeting, Lloyds chief executive António Horta Osório told shareholders he expected the government to make at least £500m from the bailout. |
| The shares have been sold off by Morgan Stanley at below the 73.5p average price paid in the three-stage bailout. | The shares have been sold off by Morgan Stanley at below the 73.5p average price paid in the three-stage bailout. |
| But taking the dividend payments into account means the total £20bn outlay has already been repaid. | But taking the dividend payments into account means the total £20bn outlay has already been repaid. |
| Former chancellor George Osborne had hoped to offer the shares at a discount direct to the public, with a campaign similar to the classic Tell Sid campaign for British Gas in the 1980s. | Former chancellor George Osborne had hoped to offer the shares at a discount direct to the public, with a campaign similar to the classic Tell Sid campaign for British Gas in the 1980s. |
| The turnaround has not been without pain. About 57,000 jobs have been cut at Lloyds as it returned to profitability. | The turnaround has not been without pain. About 57,000 jobs have been cut at Lloyds as it returned to profitability. |
| The EU also forced the bank to sell 600 branches due to competition rules and £17bn was set aside to fund PPI misselling - the biggest bill for any of the banks caught up in the scandal. | The EU also forced the bank to sell 600 branches due to competition rules and £17bn was set aside to fund PPI misselling - the biggest bill for any of the banks caught up in the scandal. |
| But this year a £4.3bn profit - the biggest in a decade - finally allowed the bank to put its past behind it. | But this year a £4.3bn profit - the biggest in a decade - finally allowed the bank to put its past behind it. |
| While the sale of the Lloyds stake marks a major turning point for the bank, taxpayers' other bailed-out institution - RBS - remains firmly in government hands. | While the sale of the Lloyds stake marks a major turning point for the bank, taxpayers' other bailed-out institution - RBS - remains firmly in government hands. |
| RBS was rescued with a £45bn bailout in 2008 and 2009 and has failed to turn a profit since. | RBS was rescued with a £45bn bailout in 2008 and 2009 and has failed to turn a profit since. |
| The bank recently posted a ninth consecutive year in the red, with losses of £7bn, bringing total losses since the bailout to £58bn. | The bank recently posted a ninth consecutive year in the red, with losses of £7bn, bringing total losses since the bailout to £58bn. |
| The lender still faces £5.9bn of charges related to historic misconduct issues and potential legal costs. | The lender still faces £5.9bn of charges related to historic misconduct issues and potential legal costs. |
| A £400m pot has also been set aside to compensate small business owners and customers of its controversial Global Restructuring Group. | A £400m pot has also been set aside to compensate small business owners and customers of its controversial Global Restructuring Group. |
| The now-defunct division secretly tried to profit from struggling businesses, leaked documents showed last year. | The now-defunct division secretly tried to profit from struggling businesses, leaked documents showed last year. |