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Government Intervention in the financial system might not be as good as expected

By Dividend Growth... on Mon, 2009-03-09 08:34
(via www.dividendgrowthinvestor.com)

Over the weekend the British government announced that it was increasing its stake in UK bank Lloyds TSB (LYG) to 65% and possibly 77% in return for insuring over 367 billion dollars in toxic assets. The government will do that by converting some of its preferred shares in the bank into common. As part of the agreement, the bank will take a "first loss" of up to 25 billion pounds, with the U.K. government shouldering 90% of any subsequent loss.

GM on Thu, 2009-03-12 12:33
Title: Brown might have bought a

Brown might have bought a pig in a poke: "I have no idea what the underlying value of Lloyds assets is...That said, I intuitively think that in the current economic circumstances it may not be nearly as high as Lloyds net book equity as reported in its latest publicly released financial statements."

Source

G. Mayer