Investors urged to back Lloyds

Shareholders are being urged to back an expected rights issue at Lloyds as the “lesser of  two evils”. Paul Mumford, of Cavendish Asset Management, said investors should support the bank in its bid to escape the Asset Protection Scheme. Lloyds is expected to launch a £11bn rights issue in the next few days following a series of disposals at the lender. Mumford said there was a strong chance RBS would follow suit but said the issue would have to be smaller.