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Lloyds Banking Group is tipped to raise up to £15 billion from a cash call in a bid to pay back its debt to the Government.
Chairman designate Sir Win Bischoff is thought to have broached the Treasury about Lloyds, which is 43% owned by the taxpayer, raising funds from the stock market in order to reduce its exposure to the Government's asset protection scheme and strengthen its balance sheet.
The bank already raised £4 billion from shareholders this year in its Lloyds TSB incarnation. HBOS, which it took over earlier this year, had also raised £4 billion through a rights issue last June.
Lloyds is expected to begin talking to its biggest shareholders this week. A spokesman said: “We are working with the Treasury to finalise the detailed terms of our intended participation in the asset protection scheme. We expect to conclude those discussions and agree terms that are in the best interests of our shareholders.”
