ANNOUNCEMENT 12 Oct 2008In October 2008, the British government announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
The letter from the EC to the UK - 18.11.2009 C(2009)9087 final -
LBG is the entity resulting from the acquisition of HBOS by Lloyds TSB in January 2009. LBG is the leading UK retail bank. LBG's products and services fall into four divisions: Retail, Wholesale, Insurance (including both life and general insurance) and Wealth and International.
On 12 October 2008 the UK notified a package of measures designed to ensure the stability of the financial system. The proposed measures fell into three parts:
A. Bank Recapitalisation Scheme
B. Wholesale Funding Guarantee Scheme
C. Short-Term Liquidity Measures
Another measure of supportis the participation of the state in Seaview project. Thus, on 3 November 2009, LBG announced a rights issue of Ł13.5 billion, in which the UK government has announced its participation to maintain its 43.5% stake, adding about Ł5.9 billion to the net amount of Ł14.7 billion it has injected into the bank since January 2009.
The European Commission gave the following assessment:
"The Commission observes that this advantage to LBG distorts competition and affects the trade conditions among Member States, since LBG is present in other Member States than the UK and since several of its competitors on the UK market are subsidiaries of banks of other Member States." (par. 129 of the letter from the EC to the UK - 18.11.2009 C(2009)9087 final)
The Commission hasdecided to consider the State recapitalisation of LBGcompatible with the common market.
The first recapitalisation took place on 19 January 2009. hence this date is considered the inception date.
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.