Lloyds set to raise funds to avoid 'toxic asset' scheme

Lloyds Banking Group confirmed today it was in advanced talks with Government and regulators over a potential fundraising that will allow it to side-step the toxic asset protection scheme (APS).

British bank Lloyds confirmed today it was in advanced talks with British government and regulators over a potential fundraising that will allow it to side-step the toxic asset protection scheme (APS).

The part-nationalised bank said it would pay a fee to the British Treasury in return for benefits of the "implicit guarantee" it has already received since the APS was announced in March if it does not take part in the scheme.