Lloyds Banking is in negotiations with the Financial Services Authority to minimize the capital requirement for prospective buyers of some of its branches, Financial Times reports. If it succeeds, bidders will have less of a capital burden, as its branch portfolio is being sold with an existing management team.
Less stringent rules would provide relief to NBNK and Sun Capital, which would have to raise the required capital upfront, above the expected purchase price of about £2 billion. Lloyds is selling 630 branches in line with European state assistance rules.
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