Lloyds 'in FSA clash over dividend'
(UKPA) – 2 days ago
Taxpayer-backed Lloyds Banking Group is reportedly at loggerheads with the City watchdog over plans to restart payouts to shareholders.
Chief executive Antonio Horta-Osorio wants to pay a small dividend from the profit the 40% state-owned lender expects to make next year, the Sunday Times said, the first since the Government acquired its stake in the 2008 rescue deal.
But the Financial Services Authority (FSA) is understood to have threatened to block the move because it wants Lloyds to preserve cash to protect itself from a potential eurozone break-up or other future financial shocks.
Mr Horta-Osorio is likely to be angered by the regulator's view as restoring the dividend would lure investors back to the bank and help it on its way to the eventual sale of the taxpayer holding.