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Lloyds Banking Group mulls £15bn cash call, say reports

Lloyds Banking Group is reportedly considering a £15bn capital raising to avoid the bank having to take part in the government’s asset protection scheme.

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.


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Global benefits predictions for 2015 from Jelf International

According to Doug Rice, managing director of international services, in 2015, managing their international duty of care will become an increasing focus for UK-based overseas organisations in both managing their short- and longer-term challenges. As a result, strong independent advice and innovative technological solutions will become more important than ever in managing their global benefits.


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