Lloyds Banking Group Could Face Heavy Fees For Bailout (LYG)

Lloyds Banking Group (NYSE: LYG) could face heavy fees for its bailout. Lloyds Banking Group may have to pay hundreds of millions of pounds in fees to satisfy EU regulators if it manages to escape the Government's asset protection scheme.

Lloyds confirmed that it was actively looking at a rights issue, combined with "the exchange of certain group capital securities", with that aim in mind. However, Lloyds refused to put a figure, which could be anywhere between £10bn and £25bn. The Government, which holds just over 43% of Lloyds shares, will take up its rights to maintain its stake.