Toxic Row Threatens to Boil Over ; Banks Wary of High 'Insurance' Rate

Summary

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BANKS and the Government are at loggerheads over the State insurance scheme for toxic assets, with some bankers hoping the political timetable will force the Treasury to make concessions on the scheme's terms.

The Asset Protection Scheme, under which potentially bad loans held by Royal Bank of Scotland and Lloyds Banking Group will be insured by the Treasury, has been subject to detailed negotiation since it was announced in February.

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Extract

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Toxic Row Threatens to Boil Over ; Banks Wary of High 'Insurance' Rate

In recent weeks both banks have floated the prospect of raising cash in the financial markets to help reduce their dependen...

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