Lloyds Banking Group and RBS, the part-nationalised UK banks, are set to outline moves to raise a combined £54bn in fresh funding, in a radical reshaping of Britain’s finance industry. Alistair Darling, chancellor, will confirm on Tuesday that the government will contribute more than £30bn of the new capital and will announce an emergency £8bn “contingent equity” fund for RBS. The two banks will also confirm plans for asset disposals to satisfy EU competition authorities. Alongside the sale of the “good” part of Northern Rock, the disposals will allow the creation of three new high street banks.
