Lloyds discuss toxic scheme alternatives with British Treasury

Lloyds Banking Group today said talks were ongoing over possible alternatives to the Government’s toxic asset insurance scheme amid speculation it has been banned from withdrawing.

The group, which is 43% owned by the taxpayer, sought to assure that “all possibilities remain open” as it continues talks with the Treasury over potential changes to the terms of its participation in the scheme – or even not taking part at all.

It said: “Lloyds and HM Treasury are discussing possible changes to the commercial terms on which Lloyds might enter into the government Asset Protection Scheme (APS) from those announced in March 2009, including the possibility of reducing the amount of assets covered by the scheme.

“Lloyds is also considering possible alternatives to entering into APS and is in discussions with HM Treasury, UK Financial Investments and the Financial Services Authority in this regard.”