From The BBC:
Gordon Brown’s government does not plan to nationalise banking group Lloyds, his spokesman has said.
Lloyds Banking Group shares fell 20% in morning trade in reaction to Friday’s announcement of massive losses at HBOS, and closed down 8% at 56.40 pence.
The early slump raised concerns Lloyds, which is 43%-government owned, could need more funds or be nationalised.
But a spokesman for Mr Brown said the government was giving “no active consideration to nationalising Lloyds”.
And the spokesman added that Mr Brown had no regrets about allowing the merger between Lloyds TSB and HBOS to go ahead, his spokesman has said.
He added that the prime minister still believed the merger was in the interests of the wider stability of the financial system.
Lloyds shares had already fallen by 32% on Friday after it announced it expected losses of nearly £11bn for 2008 at HBOS.
And after volatile Monday trading, shares fell further into negative territory after the ratings agency…
Leave a Reply