Banks reveal details of sell-offs

Author: By Russell Lynch, Press Association

RBS is selling RBS-branded branches in England and Wales, its NatWest branches
in Scotland, the Churchill and Direct Line insurance arm and parts of its
investment banking business as the price of state support.

Lloyds Banking Group will offload its Lloyds branches in Scotland, its
Cheltenham & Gloucester branches, and the Intelligent Finance online
business.

RBS confirmed plans to place £282 billion in toxic debts into a
taxpayer-backed insurance scheme, taking the Treasury’s stake to 84 per
cent. Lloyds is avoiding the scheme after announcing £21 billion fundraising
plans.

The Government will pump in around £30 billion more into the two banks under
the proposals.

The Treasury said both banks would be required to meet “tough conditions” on
pay and lending.

Existing commitments to make £39 billion available for homeowners and
borrowers will remain in place “to translate into increased lending in the
economy”.

Meanwhile, bonuses for executive directors due this year will be deferred
until 2012, while no discretionary cash bonuses for any staff earning more
than £39,000 will be paid this year.

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