if they had failed? The whole country is full of failures. It's got to be the only country in the world where you are rewarded for failure. Look at Goodwin. (Thats the advantage of being a free Mason).
But for the regulators the taxpayer could have made a profit out of bailing out Lloy which was forced into bailing out the financial system by taking over HBOS. It was the regulators who forced them to dispose of "risky" assets at rock bottom prices when given time they would have had to write off substantially less. They have also been milking Lloy ever since through PPI and "facillity payments". The scenrios drreamt up by the BOE to "test"our banks are in te words of many an "expert" extreme to the point that they are unlikely. Furthermore little regard was paid to teh fact that all banks' financial positions have improved markedly since year end 2013 (perhaps with the exception of STAN). HMG also conveniently forgets that as well as taxpayer shareholders also stumped up. i contend that but for the efforts of the regulators and the BOE we the tax payers woud have had our money back a long time ago at least as far as Lloyds is concerned.Given that the same mistakes were made in "overseeing" RBS' recovery they too would have been much further on.Govt has learnt nothing from G Brown's debacle in the gold market.
Lloyds Banking Group: Lloyds Banking Group’s projected CET1 capital ratio remains above the 4.5% CET1 threshold in the stress scenario. The PRA Board has, however, judged that, as at December 2013, the bank’s capital position needed to be strengthened further. The PRA Board noted that, since end-2013, Lloyds Banking Group has delivered positive financial results and is continuing to take steps to strengthen and de-risk the balance sheet, ahead of baseline projections. In April 2014, the bank also exchanged certain Tier 2 capital instruments into £5.3 billion of high-trigger AT1 securities. In light of the measures that Lloyds Banking Group already has in train to augment capital, the PRA Board did not require the bank to submit a revised capital plan.
'Beats you why permission is needed to pay dividend'. Perhaps you don't read the news. The BOE have painted a scenario where the base rate rises to 4%, inflation increases, unemployment rises and house prices tumble (it has all happened before). Lloyds is heavily involved in mortgages and if the supposed scenario should occur Lloyds would almost certainly have to be bailed out again - which is not an option anymore. To stop such a thing happening in the future the regulator is demanding that all banks increase their balance sheets to alleviate the need for you and I to bail them out again, hence, the governments (you and I) reluctance to let Lloyds deplete their balance sheet by paying a dividend. Lloyds is still in recovery mode and a dividend will be forthcoming eventually. Hope this helps to explain the current situation. I think.
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