Lloyds Banking Group has been forced to abandon plans to withdraw from the UK’s toxic debt insurance scheme after failing to show it could raise enough capital through a rights issue and disposals to meet strict regulatory requirements, reports the Daily Telegraph. Eric Daniels, chief executive, had hoped to exit the scheme in order to prevent the government raising its Lloyds stake beyond the current 43.5% and to limit the scale of state-aid remedies threatened by EU regulators. The FT adds that Daniels is still keen on a smaller rights issue.

This entry was posted by Gwen Robinson on Friday, September 18th, 2009 at 4:59 and is filed under Capital markets. Tagged with Lloyds Banking Group. Edit this entry.