LONDON: The British government said Saturday it will take a majority stake in Lloyds Banking Group and guarantee 260 billion pounds (290 billion euros, 365 billion dollars) worth of its toxic assets.
In a new round of bailing out struggling British banks, the state will increase its ownership of the group from 43 percent to 65 percent. Lloyds Banking Group has also pledged to lend a further 28 billion pounds over the next two years as part of the package.
Under the government's insurance scheme terms, LBG has to take the first "hit" of up to 25 billion pounds on its toxic assets before the government steps in. The deal was hammered out between bank and Treasury officials in recent days.
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