Shareholder group suing Lloyds blasts government for "gloating" about £900m profit on sell-off

William Turvill
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Lloyds Banking Group was rescued by the taxpayer in 2008 (Source: Getty)

A group of more than 6,000 shareholders suing Lloyds Banking Group has condemned the government for “gloating” about its profit from selling off the lender.

Lloyds returned to full private ownership this morning after it was bailed out by the taxpayer at the height of the financial crisis.

The Treasury put in £20.3bn to rescue the bank and today claimed a profit of £900m, having received £21.2bn from the shares it sold.

Read more: It's official: The government no longer owns any Lloyds shares

The news was welcomed by chancellor Philip Hammond, and sent Lloyds’ share price up three per cent to 72p.

Not everyone greeted the news, however.

The Lloyds/ HBOS shareholder action group said in a statement:

It is disgraceful that the government is gloating about making a profit from selling its stake in Lloyds, whist ordinary people, some of whom were employed by Lloyds and encouraged to buy Lloyds TSB shares as part of their pension, have still after 10 years not been compensated for bailing out HBOS.

Read more: Noel Edmonds steps up his fight against the banker (Antonio Horta-Osorio)

Lloyds and its former executives are due to appear in court over the shareholder legal action in October.

The group, comprising former Lloyds TSB investors, is suing the bank for between £300m and £350m, claiming it failed to make them aware of the “parlous state” of HBOS before it was acquired in 2008.

The shareholder group, represented by law firm Harcus Sinclair UK, is made up of approximately 6,000 claimants, including 5,700 private shareholders and more than 300 institutional investors.

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