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Lloyds closes 13-man equities business

first_img KCS-content Tuesday 15 February 2011 8:12 pm Share GOVERNMENT-backed bank Lloyds has closed the equities division of its investment-banking arm in a shift back to its core banking services.The equity markets division, a minor part of Lloyds Bank Corporate Markets, which raises debt and equity finance for mid-sized companies, had worked on share issues such as initial public offerings for clients.The bank said the unit’s closure on Friday was a “strategic decision” to refocus on its debt service provision. But the unit, with just 13 employees after five years in business, lacked market share and had little new work coming in.“Our equity markets business is modest with a small market representation,” said a spokesperson. “As part of our ongoing plans to simplify our business model, we have decided to withdraw from the equity market.” “We are making every effort to offer redeployment opportunities to affected employees,” he added.Joe Dickerson, a banking analyst of Banco Espirito Santo, said the equities unit was “very much a non-core business”.Lloyds Bank Corporate Markets employs more than 5,000 staff across areas including acquisition finance and lending to private equity. It made a loss of £1.09bn in the six months to the end of June 2010, up from a £7.73bn loss in 2009.Lloyds has faced political pressure to distance itself from riskier investment banking work and return to extending lending and risk management services to UK corporates since the fallout from the financial crisis.In November 2009, the heads of three private stockbrokers wrote to then City minister Lord Myners to complain that taxpayer-backed banks were putting pressure on their debt service clients to use their broking services as part of their loan agreements. More From Our Partners Fort Bragg soldier accused of killing another servicewoman over exthegrio.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgLA news reporter doesn’t seem to recognize actor Mark Currythegrio.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgFans call out hypocrisy as Tebow returns to NFL while Kaepernick is still outthegrio.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgPorsha Williams engaged to ex-husband of ‘RHOA’ co-star Falynn Guobadiathegrio.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comMan on bail for murder arrested after pet tiger escapes Houston homethegrio.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comColin Kaepernick to publish book on abolishing the policethegrio.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comKansas coach fired for using N-word toward Black playerthegrio.comKiller drone ‘hunted down a human target’ without being told tonypost.comKamala Harris keeps list of reporters who don’t ‘understand’ her: reportnypost.com whatsapp whatsapp Lloyds closes 13-man equities business Show Comments ▼ Tags: NULLlast_img

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