Lloyds Desperate To Get Out Of APS

Lloyds Banking Group (LLOY.L) continues to leak to the market that it is trying to get out of APS. This is the Government protection scheme created to save them,.

As the saying goes, there is not situation so bad that Government intervention cannot make it worse; This is clearly what new Lloyds Chairman Sir Win Bischcoff thinks.

But the point of view of the Lloyds board is really odd. As Peston says, their ideas will cost the taxpayers more today when we are broke; so that should kill off doing much of what they want.

Secondly they think it will get the EU off their back - er…wrong again. The EU is not going to sit idly by and watch a company take 40% plus market shares in current accounts and mortgages. Whatever the UK government has done to waive national competition rules.

I note the asset sales posted by Lloyds are not to be in these market either, but in Insurance where it has a tiny market share. All very strange.

For the risk traders amongst the readership - a short on Lloyds now seems a good trade as if it really does try a £25 billion rights issue the discount is going to be heroic - can’t see how the share could be more than 40p - a long way for the price to fall from its current 93p.

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