Taxpayers lose big on Lloyds and TSB in 2010

Two of the biggest bailed-out business bank accounts in the UK lost big this year, leading to taxpayers losing a combined £12.8 billion in shares.

Share losses in both Lloyds TSB and RBS for the year have dashed hopes that the government could begin to sell off the nationalised banks in the coming months of the new year.  Some industry experts believe it may be quite some time before these taxpayer-rescued banks are fully privatised once more.

The banking industry is poised to undergo sweeping changes in 2011.  Three major banks will have new chief executives, Lloyds being one of that number.  Additionally new EU banking restrictions will be in place that will regulate cash payments down to 20 per cent in some cases.

Former Barclays Capital head Bob Diamond will be taking the reins of the banking giant.  Mr Diamond has received about £75 million in performance-related share deals and cash over the last half a decade, and is slated for an appearance before the Treasury select committee in mid-January regarding the bonus policies of the banking sector.

Stuart Gulliver will be taking over at HSBC as well from his former role as an investment banker.  Former Santander executive António Horta-Osório will replace Eric Daniels as Lloyds top dog this coming March.

One banks analyst from Exane BNP Paribas stated that it is now highly unlikely that the government would initiate a sell-off any time soon.  Ian Gordon remarked that a reduction in the number of shares teh government holds in both Lloyds and RBS would most likely not occur until after 2011’s fourth quarter. The delay is partly due to the possibility of a recent governmental independent banking commission that may recommend breaking up larger UK banks in an effort to bring more competition into the marketplace.

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