Lloyds Banking Group mulls £15bn cash call, say reports
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Sources have told the Financial Times newspaper that the regulator is looking at the bank's proposals to raise £15bn through investors, which would also include involve the sale of assets and the shrinking of the group's balance sheet.
Lloyds Group is due to present a detailed plan to chancellor Alistair Darling over the next few days, the newspaper says.
The bank has already confirmed to the market that it is considering modifying its plans to place £260bn of assets into the APS in an announcement to the stock exchange last month.
If Lloyds Group were to place this level of assets in the scheme it would cost it £15.7bn.
By raising £15bn through investors Lloyds Group wouldn't need to use the scheme, would avoid the fee, and would shake off the stigma of additional government support, the FT says.
