£1.3bn bill for taxpayers after failed bank deal

1 May 2013

Lloyds-TSB We may have bailed out Lloyds bank, but it isn't over yet! We're all set to be stung with another £1.3 billion bill after a deal to sell 632 of its branches to the Co-op fell through.

Don't worry about Lloyds feelings though as they've just announced that they've made a pre-tax profit of £2.04bn in the first quarter of this year. Great.

We've already given Lloyds £17bn and now own 39% of it, but y'know, it isn't like they have to buck up their ideas and start being value for money or anything.

Because of all this, the Treasury is looking at dumping Lloyds back into the market, provided their shares reach 61p (they're currently 55p). Of course, if the government sell Lloyds off, it'd be foolish to think that we'd see any of the money, but there are politicians hoping that this will be the case.

The Morning Star say that a "re-privatised Lloyds would leave a trail of economic ruin. The bank posted losses of £570m for 2012, with £4bn burned away compensating ripped-off customers for missold PPI and interest rate swaps," which is cheerful.

The whole thing is a farce isn't it? We should all draw our money out and hide it under our mattresses and let the banks whistle.

TOPICS:   Banking   Investments

2 comments

  • Mr M.
    £8 Billion a year profit, that makes just over £3 billion for the 39% share. In six years time the principle of the loan will be paid. From then on everyone in the UK can expect a smudge under £50 bankers bonus per year assuming the population of the UK, and Lloyds profit, stays the same. Either that or they can try and dump it for short term gain.
  • Zleet
    Am I reading this wrong or would we make a profit by holding onto the shares a few years? What would be the logic on selling them at a loss?

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