■ Lloyds to raise £21bn - £13.5bn in a fully underwritten rights issue and £7.5bn debt-for-equity swap. The rights issue price to be announced on 24 November.
■ Lloyds will not now take part in the Government Asset Protection Scheme (GAPS) - state-sponsored insurance for bank’s toxic assets. But it will pay a £2.5bn fee for the implicit government protection to date.
■ The government will exercise its rights, pumping in a further £5.7bn into Lloyds order to maintain its stake at 43 per cent.
■ A £25.5bn state capital injection into RBS, taking the taxpayers’ interest in the bank to 84 per cent. A further £8bn of state money could be pumped in should the bank’s core tier one capital ratio fall below 5 per cent.
■ RBS’ GAPS involvement scaled-back - assets to be covered by the scheme have been reduced from £325bn to £282bn, with the level of initial loss to be carried by the bank before GAPS kicks-in increased from £42bn to £60bn.
■ RBS’ GAPS fee renegotiated - from an up-front £6.5bn fee to an annual £0.7bn payment for the first three years, followed by £0.5bn a year for the lifetime of the scheme.
■ As the price for state aid, EU competition regulators require both Lloyds and RBS to make divestments. Lloyds must sell its Scottish retail operations, its Intelligent Finance online bank and its Cheltenham & Gloucester branches. RBS must divest its branch network in England and Wales, its Scottish NatWest branches, RBS Insurance, Global Merchant Services and the bank’s interest in RBS Sempra Commodities.
■ Neither bank can pay dividends for at least two years and no cash bonuses are to be paid this year to employees earning more than £39,000 a year.
