Lloyds Banking Group: A ticking time bomb

27th June 2011

The Financial Times (paywall) has reported that Lloyds Banking Group has double the exposure to the riskiest kind of mortgages than of any of its five top five banking rivals.

It reports this as "potentially a ticking time bomb for Britain's largest high-street lender".

The news follows data released by the Bank of England which showed that loans representing more than a quarter of Lloyds' mortgage book are worth at least 90 per cent of the property value they are secured against.

Elsewhere it is reported that Lloyds is to shed more than 15,000 jobs in a £1bn cost-cutting drive. The Scotsman reports that the new chief executive Antonio Horta-Osorio will unveil details of the cuts as part of a strategy to be unveiled to the City this week four months after he succeeded Eric Daniels.

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