Community | March 06, 2009 | 0 comments

Blank under fire as Treasury moves to take control of Lloyds

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Lloyds and the Treasury were locked in tense negotiations tonight as the banking group tried to prevent the government from taking a majority stake.

The Lloyds board met throughout the day to discuss the terms offered by the Treasury to convert £4bn of preference shares into ordinary shares and insure up to £260bn of its most troublesome assets – a move that could increase the taxpayer's stake to between 60% and 70%.

In a day of frenzied speculation about the delay to agreeing terms, there were rumours that the entire board was prepared to resign because of the creeping control of the taxpayer.
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