Soon, the Government will own it all. From today's Telegraph:
The group, formed from the merger of HBOS and Lloyds TSB, is determined to resist the prospective approach from the Treasury despite the fact that it will mean a continued prohibition on paying dividends to investors and maintain the onerous interest bill triggered by the two banks' participation in last autumn's £37bn industry rescue package.
Lloyds, which will be Britain's biggest retail banking provider from tomorrow, is 43pc-owned by the taxpayer. The conversion of the preference shares would leave the Government with a majority stake in Lloyds, which the bank's executives believe would lead to greater influence over its lending activity
Lloyds management need to understand that resistance is futile. Their balance sheet is about to crumble as the economy slides further into recession, and debt defaults increase. The bank will soon belong to the taxpayer, who will then have to cover the losses.
Modern banking is all about excessive risk-taking, followed by failure, finishing up with state ownership.