Lloyds TSB has urged shareholders to vote for a 17 billion capital injection granted on its takeover of HBOS, which revealed 5 billion of writedowns on exposure to collapsed banks and bad mortgages, Telegraph.co.uk reports.
HBOS finance director Mike Ellis says the biggest losses of 1.8 billion were caused by the failure of Lehman Brothers, Washington Mutual and Icelandic banks, adding that the bank’s future with Lloyds TSB was “much more promising”.
He said there was a 1.25 billion exposure to customers defaulting under distressed conditions in the construction and real estate sectors, plus a 1.7 billion loss in the corporate banking sector.
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