Banks predict rise in bad debts
British taxpayers could be on the hook to shoulder future bad debt losses at Lloyds Banking Group sooner than expected after the bank revealed yesterday it anticipated the provisions for problem corporate loans would rise by more than 50% in 2009.
The sharp deterioration in the economy was underscored in the results of Lloyds and Barclays, which also predicted a sharp increase in bad debt charges this year. Most of the Lloyds bad debt charges, which analysts believe could reach more than £14bn, arise from property loans made by HBOS, which was rescued by Lloyds last year.
Financial Times
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