This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7931760.stm
The article has changed 11 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Taxpayer deal hits Lloyds shares | |
(about 2 hours later) | |
Shares in Lloyds Banking Group have fallen more than 8% during the first trading session since it became majority-owned by the government. | |
The move came as part of a deal that will involve the taxpayer insuring £260bn of the group's toxic loans. | |
The government's stake in the bank will rise from 43% to 65%. | |
It comes as staff wait to find out who will receive a share of £80m cash bonuses on offer. Members of the board will not receive bonuses. | |
The bank stressed that staff who receive bonuses will earn on average £17,000, but there are still expected to be questions asked about the payments by opposition politicians. | |
Branch workers | |
Lloyds has insisted that executive directors will forgo their bonuses, and other senior staff will have theirs deferred until at least 2010 - with the possibility that these could be clawed back if performance misses targets. | |
Staff are graded in eight bands, and it is understood that employees within bands five to eight will receive bonuses in cash. | Staff are graded in eight bands, and it is understood that employees within bands five to eight will receive bonuses in cash. |
Lloyds said that most of these workers are employed in branches and the average payout would be around £1,000. | Lloyds said that most of these workers are employed in branches and the average payout would be around £1,000. |
The group added that the deal had been approved by UK Financial Investments, which manages the government's stake in financial institutions. | |
In addition, unions have insisted that staff from the former Lloyds TSB deserve their bonuses as that side of the group remained in profit. | In addition, unions have insisted that staff from the former Lloyds TSB deserve their bonuses as that side of the group remained in profit. |
Lloyds Banking Group had to turn to the Treasury for help following its takeover of HBOS, which recently reported an annual loss of nearly £11bn. | |
By 1120 GMT, Lloyds Banking Group shares were down 8.1% at 38.6 pence. | |
Other banking shares have also fallen, with Barclays down 10.0% to 58.3p, HSBC down 9.8% at 325.5p and Royal Bank of Scotland falling 8.1% to 18.2p. |