Lloyds TSB and RBS have been forced to sell off some major holdings within the two groups after lengthy discussions with the competition commission.

Lloyds, which is 43.5% owned by the government, confirmed its intentions to raise capital and stay out of the government based banking insurance scheme. However it will still have to pay over £2.5 billion to the government to avoid joining the Government Asset Protection Scheme, used to cover toxic debt and defaults.

Royal Bank of Scotland has confirmed it will join the GAPs scheme on amended terms. They have also confirmed the sale of RBS branches in England and Wales. The Nat West Brand in Scotland will also be sold along with several other RBS subsidiaries

“I believe today marks a key milestone in the radical restructuring we are undertaking to bring RBS back to stand-alone strength,” RBS chief executive Stephen Hester said.

Lloyds have agreed in principle to sell at least 600 branches, including Lloyds TSB in Scotland, C&G, and Intelligent Finance along with some Lloyds branches in England and Wales. The planned sell off will happen over the next four years.
Well known names such as Allianz, Generali and Zurich have been mentioned as possible buyers for the assets that are to be sold off.