An approach has been made by Lloyds TSB for German bank Dresdner as the well known UK financial institution looks to maximise retail opportunities across Europe.
Lloyds TSB has ridden the credit crunch very well and as such it is in a very strong position compared with many others. This is why it is making tentative enquiries regarding the German bank, valued at around GBP6 billion. It has a keen interest in the German market generally as it is also looking at a couple of other big name German banks that are potentially for sale.
At the moment there is no immediate need for action so Lloyds TSB will seek the views of their shareholders as to their thoughts on how they wish to see their funds invested before making any further steps toward purchase.
Citibank parent citigroup has posted another loss for the third successive quarter, though it is less than was expected.
Asset wise Citibank is the biggest bank in the United States but has been badly hit by the sub-prime lending troubles and is fighting to get out of the mire. The bank recorded losses of GBP1.3 billion in the three month period to the end of June, with around GBP5.8 billion of write-downs again hitting them hard.
The losses were less than anticipated though leading to their share price going up by a little less than 8 percent. The Citibank chairman said that although there is still a lot of work to do they are very encouraged by the progress that has already been made.
New Lloyds TSB current account customers will be able to enjoy a 6 percent interest rate if they open the Lloyds Plus account before 13 July.
The account is paying this exceptional rate for 12 months from the date the account is opened on balances up to GBP25,002. After the year is up the interest rate will rever back to 4 percent, still a very good rate in itself. The one proviso made is that at least GBP1,000 must be paid into the Lloyds TSB current account each month.
A spokeswoman from Lloyds TSB proudly stood by the rate offered, delighted that it was offering higher rates while many of its competitors were reducing theirs.
