This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Lloyds Bank Shakes Off Its Troubled Past

NEW YORK (TheStreet) -- UK Financial Investments' sale of more of its Lloyds Banking Group (LYG - Get Report) stake this week is a story of redemption for the company.

UKFI manages the government's ownership in Lloyds Bank, and said Tuesday it would sell a 7.5% stake in the company, worth about 4.2 billion pounds.

The sale is limited to institutional investors, and should help trim the government's stake in Lloyds to 25%, from the initial 43% it acquired during the financial crisis. A previous sale took place in September.

In 2009, Lloyds Bank accepted cash injections by the British government in order to stabilize its books, which were saddled with toxic assets.

Although Lloyds Bank had been conservatively managed in the years leading up to the crisis, the government had pressured it to merge with the less-conservative HBOS, which saddled the combined company with about 35 billion pounds of cumulative losses on its portfolios of loans.

Since then, the company has improved its books, and it returned to profitability under the new leadership of Lloyds Bank's CEO Antonio Horta-Osorio

Horta-Osorio was appointed chief executive in 2011 and has made an effort to simplify the business by focusing on lending to U.K. households and businesses.

Lloyd's is trading at around 79 pence in London this week, greater than the 73.6 pence a share average that the government paid during the crisis.

The U.K.'s finance ministry said Tuesday that its main concern is to get the best value for taxpayers, while maximizing support for the economy and restoring the company to private ownership.

There are no exact dates of when the Treasury plans to give taxpayers the opportunity to purchase Lloyd's directly, but officials have said they will do it "when the time is right."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LYG $3.82 2.10%
AAPL $92.37 -0.93%
FB $119.00 1.00%
GOOG $707.91 0.92%
TSLA $215.83 2.00%


Chart of I:DJI
DOW 17,662.73 +2.02 0.01%
S&P 500 2,044.73 -5.90 -0.29%
NASDAQ 4,695.2610 -21.8330 -0.46%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs