Lloyds: Welcome relief

The UK government may not end up with a majority of Lloyds Banking Group after all. Ever since the UK bank had its toxic loans insured by the state last month, observers have assumed the strings attached – the compulsory conversion of £4bn of preference shares into ordinary equity, and the issuance to the state of £15.6bn of non-voting “B shares” – meant the government’s stake would leap from 43% to as much as 77%. But that was when the shares were at 31p, below the 38p conversion price. Followi...