'Asia Pacific Group' - Lloyd's Shareholders Face Wipeout

New York, NY (PressExposure) March 18, 2009 -- Shares in Lloyd's Banking Group fell as much as another 15% as the UK government concluded a deal which sees it taking a 77% stake in the bank and sources close to "Asia Pacific Group" suggest that the next step is likely to be full nationalization.

"Asia Pacific Group" said that its decision to avoid investment in the UK banking sector, even as the UK government was pressing for the merger of the original Lloyd's TSB and the ailing HBOS, was based on suspicions that the latter was in trouble for reasons that had yet to be disclosed.

Some 80% of the insurance that the new government deal will provide will cover toxic loans made by HBOS which demonstrates the dire state of the bank before its merger.

"Asia Pacific Group" offered sympathy for shareholders of the original Lloyd's TSB concern as it was the only major UK bank which hadn't been hit by subprime exposure when the crisis unfolded 15 months ago when its stock had been trading at over 660p.

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Press Release Submitted On: March 16, 2009 at 1:06 am
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