Lloyds sell-off continues as funding fears weigh

Notwithstanding Bank of England Governor Mervyn King's comment yesterday that he 'can't imagine any argument for extending [the loans to Lloyds]', it hardly seems probable that they won't extend them if needed does it? The Bank bailed out these banks at huge cost to the taxpayer in much more perilous times than now, so how likely is it that the Bank will walk away in 2012 and let Lloyds refinancing fail - thereby fatally undermining the value of the Government's shareholding and allowing default on the huge loans still outstanding from the Bank? Or am I missing something?

David B - you are spot on. Maybe this is a good moment to buy Lloyds shares!

Lloyds have been increasing the interest rate charged on credit cards simply to profit at the expense of customers. After being told that the rate being charged on my own Lloyds TSB credit card account was being increased for the second time this year (despite no adverse credit history) I moved to Nationwide. By treating their customers in this shabby way, Lloyds will lose good business and so it is hardly surprising to read that they might struggle to repay loans due to the British taxpayer.

Lloyds, as with the other Banks who took advantage of the bail out from Bank of England will have to repay in 2012, as if they do not, the Loans would have to be re structured if any further time were required to settle them.

This in turn would affect the credit rating of UK PLC and its rating, which some Country's, China for instance have already reduced from the AAA .

Therefore, dont pay massive bonuses and Dividends and pay up for the good of us all.

Not really news worthy now is it? Lots of ifs and buts and unlikely scenarios- another cheap shot at the profitable Lloyds Banking Group. Stop doing the shorties' bidding.

The Lloyds funding is part of the agreement with the former government for Lloyds to rescue HBOS.

The Lloyds' shareprice has been destroyed as a result of the rescue so the least the government can do is to continue lending money to Lloyds. The government gets a decent interest on the loan afterall.

David,

There is a difference between the bailout by the government for which Lloyds handed over shares and agreed a hefty rate of interest and the money lent by the Bank of England under the Special Liquidity Scheme (SLS) which was lent at a preferential rate to help ensure the banks had enough cash to see them through while the markets were frozen.

Thank you David for reminding us that when the press, commentators , governments and ministers who should know better, refer to the Lloyds bail-out, they really mean and should say the HBOS bail out. It is outrageous to attach the name of the conservative Lloyds to the spendthrift, irresponsible management of HBOS. It gives a reckless image to LLoyds, while profligate HBOS sits smiling in the background.

"It is outrageous to attach the name of the conservative Lloyds to the spendthrift, irresponsible management of HBOS. "

Why not, Blank and Daniels were persuaded to attach HBOS to Lloyds, weren't they?

As a taxpayer I've had enough of these failed companies gumming up the economic recovery. Both RBS and Lloyds would be bust if left to their own devices in 2008 as they should have been. There is no more reason to bail out their shareholders than those of Northern Wreck or Bradford & B*ggery. Don't buy all that self-serving, scaremongering rubbish about how we depend on invisibles from the financial services 'industry'-- Manchester University demonstrated recently that it's smoke and mirrors. As a nation we need to stop fooling around with silly paper money games and start supplying the world's real needs again.

Both dinosaurs should be fully nationalised at minimum cost as the core of a new public sector in retail banking. There should be a tightly regulated mixed economy-- as in broadcasting, a public service in which Britain excels. The pathetic attempts of the banksters to play speculator and rocket scientist which cost all of us so dear can be closed down or flogged off separately.

Some clarification on HBOS for Lloyds customers

The Bank of Scotland was an indepedent bank of high standing in our country dealing mainly in business banking and investments with a little mortgaging until it joined, much to our dismay in Scotland,with a former building society,the Halifax,only to be associated with associated with Halifax's mortgaging strategy.Lloyds customers/investers should note that they are part of a group which also contains apart from the Bank of Scotland another former solid Scottish Bank,the Trustees Savings Bank(TSB)and should note that the root cause of your current problems stem from the Halifax Bank,formerly building society.

To some individuals, history is bunk but in my view such detail is important in setting the record straight

One can imagine the stock taking a dive in Autumn, only to progress to 80p and even a pound by christmas