Skip to main content

Market Overview

Lloyds Banking Back In Private Hands After 2008 Government Bailout

Share:
Lloyds Banking Back In Private Hands After 2008 Government Bailout

Lloyds Banking Group PLC (ADR) (NYSE: LYG), the venerable British institution that was founded in 1765 but only survived the 2008 global market crash when the government kept it afloat, is back in private ownership.

The institution on Wednesday said the government’s holding company, Financial Investments Limited, cut its ownership to zero as of late Tuesday from a stake that once was 43 percent.

"Six years ago we inherited a business that was in a very fragile financial condition," Lloyds chief executive Antonio Horta-Osorio, who joined Lloyds in 2011, said in a statement on Wednesday.

"Thanks to the hard work of everyone at Lloyds, we’ve turned the group around."

Related Link: Brexit's Biggest Loser Won't Be Britain

Lloyds Bank said the government will see a return of 21.2 billion pounds ($27.51 billion) on its investment, according to the BBC, for a profit of 900 million pounds ($1.16 billion).

The bank’s crash cost 57,000 jobs and shuttered 600 branches across the European Union. Shady sales of payment protection insurance, a sort of mortgage insurance, led to the bank’s near-collapse.

Lloyds return to the private sector only leaves the Royal Bank of Scotland Group PLC (NYSE: RBS) still in government hands from the financial meltdown. Taxpayers own 73 percent of the bank.

 

Related Articles (LYG)

View Comments and Join the Discussion!

Posted-In: Antonio Horta-Osorio Lloyds Banking Lloyds Banking Group PLCNews Eurozone Global Markets General Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com