Lloyds Chairman Doesn't Want Higher UK Government Stake In Bank

Date : 01/20/2009 @ 2:50AM
Source : Dow Jones News
Stock : (HBOS)
Quote : 70.1  0.0 (0.00%) @ 1:00AM
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Lloyds Chairman Doesn't Want Higher UK Government Stake In Bank

LONDON -(Dow Jones)- Lloyds Banking Group (LLOY.LN) Chairman Victor Blank said he doesn't want the government to take a bigger stake in the bank, although he's happy to have them as a shareholder.

"I think we can probably conduct our business better than the government can conduct it for us," Blank told Sky News late Monday.

The U.K. government currently has a stake of 43% in Lloyds Banking Group, which started trading Monday following the successful merger of Lloyds TSB and HBOS. The stake came after HBOS was forced to make a government-backed rights issue as part of the government's bailout of U.K. banks last year.

Blank said the government shouldn't have a higher stake, and he believes it better for the bank's customers, "that we are more secure, we are safer, that we can give them a greater range of products."

"We believe in time it will be better for our shareholders," he added.

-By Steve McGrath, Dow Jones Newswires; 44-20-7842-9284; steve.mcgrath@dowjones.com

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