Lloyds set to raise funds to avoid 'toxic asset' scheme

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The Independent Online

Lloyds Banking Group confirmed today it was in advanced talks with Government and regulators over a potential fundraising that will allow it to side-step the toxic asset protection scheme (APS).

The part-nationalised bank said it would pay a fee to the Treasury in return for benefits of the "implicit guarantee" it has already received since the APS was announced in March if it does not take part in the scheme.



Lloyds was reported today to have begun sounding out investors over a potential £25bn capital-raising to withdraw from APS, which is designed to insure banks against their bad assets.

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