Lloyd's finds an extra pounds 900m for names
Tuesday 07 May 1996
The surprisingly large reduction in the cost of funding Equitas is the biggest boost that David Rowland, Lloyd's chairman, has had so far to the prospect of persuading names to vote in favour of the rescue plan.
Together with other additional contributions from brokers, agents and the sale of buildings, which could total as much as pounds 400m, the original pounds 2.8bn rescue package could be improved by at least pounds 1.2bn.
This will allow Lloyd's to write to names shortly - probably next Friday or Monday - offering them substantial extra incentives to vote in favour of the rescue, provisionally on 15 July.
One likely change is a halving to pounds 50,000 of the proposed pounds 100,000 cap on future liabilities of names for further losses, once they have signed up to the rescue package.
The timetable is thought to be slipping, however, because of the extra work involved in refining the settlement. Without a vote in favour by the end of August, when Lloyd's must prove it is still solvent, there would almost certainly be a collapse of the market.
There will be other benefits offered in next weekend's letter. It will include concessions for names who have paid their losses as demanded, for the hardest hit who have won legal actions and for those who are suing accountancy firms.
The number of names eligible for payments by the market is also likely to be expanded from the present 5,000, though Lloyd's would not confirm that the number would reach 6,000.
The reduction comes after detailed negotiations between market authorities and the Department of Trade and Industry.
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 2 HeForShe campaign: Iceland to follow up Emma Watson speech with UN women's rights conference – for men only
- 3 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 4 Ed Sheeran dedicates song to David Cameron
- 5 Now we know whose fault it is if you end up being murdered in Thailand
Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Five facts you never knew about your (almost obsolete) tax disc
The Aral Sea: Nasa pictures show how what was once the fourth largest lake in the world has become almost completely dry
Thailand beach murders: Hannah Witheridge 'was raped by two men before being killed'
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Should gay sex be illegal? 16% of Britons think so
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...