8/14/2019 TheSun 2009-11-04 Page15 Huge Shake-up for Rbs and Lloyds

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business15theSun | WEDNESDAY NOVEMBER 4 2009

KLCI 1,242.32 0.56

STI 2.621.55 23.88

Hang Seng 21,240.06 380.13

SCI 3,114.23 37.58

Nikkei closed

TSEC 7,322.93 12.25

KOSPI 1,549.92 9.17

S&P/ASX200 4,531.50 8.90

Foreign currency Bank sell Bank buy Bank buy

TT/OD TT OD

1 US DOLLAR 3.4540 3.3890 3.3790

1 AUSTRALIAN DOLLAR 3.1550 3.0600 3.0440

1 BRUNEI DOLLAR 2.4790 2.4180 2.4100

1 CANADIAN DOLLAR 3.2160 3.1370 3.1250

1 EURO 5.1160 5.0120 4.9920

1 NEW ZEALAND DOLLAR 2.5270 2.4160 2.4000

1 PAPUA N GUINEA KINA 1.4510 1.1860 1.1700

1 SINGAPORE DOLLAR 2.4785 2.4180 2 .4100

1 STERLING POUND 5.6710 5.5560 5.5360

1 SWISS FRANC 3.3950 3.3120 3.2970

100 ARAB EMIRATES DIRHAM 95.6900 90.6200 90.4200

100 BANGLADESH TAKA 5.1500 4.7500 4.5500

100 DANISH KRONE 70.9500 65.1600 64.9600

100 HONGKONG DOLLAR 45.3500 42.9500 42.7500100 INDIAN RUPEE 7.6200 7.0000 6.8000

100 INDONESIAN RUPIAH 0.0374 0.0320 0.0270

100 JAPANESE YEN 3.8300 3.7350 3.7250

100 NORWEGIAN KRONE 62.1300 57.0100 56.8100

100 PAKISTAN RUPEE 4.2200 3.9500 3.7500

100 PHILIPPINE PESO 7.4600 7.0200 6.8200

100 QATAR RIYAL 96.3200 91.6300 91.4300

100 SAUDI RIYAL 93.5200 88.9600 88.7600

100 SOUTH AFRICAN RAND 44.9200 41.3300 41.1300

100 SRI LANKA RUPEE 3.1100 2.8500 2.6500

100 SWEDISH KRONA 50.9700 46.2800 46.0800

100 THAI BAHT 11.0900 9.4000 9.0000

Source: Malayan Banking Berhad/Bernama

November 3, 2009EXCHANGE RATES

Huge shake-up for

RBS and LloydsLONDON:Britain is to break up state-res-cued lenders Royal Bank of Scotland andLloyds in a massive shake-up that will alsosee an extra 30 billion pounds injected intothe pair, the Treasury said yesterday.

Both banks, which were bailed out atthe height of the global financial crisis, willbe required to meet tough requirementson staff pay and lending in return for thefunds, equivalent to US$49 billion (RM166.6billion).

To promote greater competition in UKbanking, and meet EU state aid rules, thebanks will ... be required to make divest-ments of significant parts of their businessesover the next four years, the Treasury saidin a statement.

Under the plans, the British governmentwill pump another 25.5 billion (RM142.8

billion) into Royal Bank of Scotland. RBSwill also place 282 billion (RM1.579trillion) of high-risk debts into the govern-ments toxic asset insurance scheme.

The developments will see the govern-ments economic interest in RBS climb to 84percent and its voting rights rise to 75%.

Lloyds meanwhile unveiled plans toraise at least 21 billion of new funds andpay a 2.5-billion fee for avoiding the statesasset protection scheme (APS).

The fundraising includes a record13.5-billion rights issue which wouldrepresent Britains biggest-ever sale of newshares to existing shareholders.

The government said it would take part

and maintain its 43% stake in Lloyds.Lloyds will not participate in the APS

and instead will raise additional privatesector capital and pay a fee to the taxpayerfor the implicit protection provided to date,the Treasury added.

This will reduce the risk borne by thetaxpayer, improving value for money.

RBS said in a separate statement that itwould sell its RBS branches in England andWales, and NatWest branches in Scotland,as well as its Churchill and Direct Line in-surance division and parts of its investmentbanking arm.

Lloyds Banking Group said it wouldoffload its Lloyds branches in Scotland, itsCheltenham & Gloucester branches, andthe Intelligent Finance online unit.

The likely costs to the taxpayer and the

risks on the impact on the public financeshave been reduced, the Treasury addedyesterday.

Both banks will still be required to meettough conditions on pay and lending.

The Treasury has meanwhile reachedagreement in principle with EU Competi-tion Commissioner Neelie Kroes over therestructuring.

The government has reached agree-ment in principle with CommissionerKroes after constructive and helpful dis-cussions on a package of restructuring andother measures, which we are confidentwill address the concerns of the EuropeanCommission, it said. AFP

KL marketsummaryNOVEMBER 3, 2009

FBMEMAS 8,318.90 - 2.98FBM-KLCI 1,242.32 + 0.56INDUSTRIAL 2,668.38 + 1.86CONSUMER PRODUCT 365.25 - 0.73INDUSTRIAL PRODUCT 92.41 - 0.31

CONSTRUCTION 231.47 - 0.63TRADING SERVICES 159.76 - 0.25FINANCE 10,555.26 + 28.47PROPERTIES 785.12 - 6.45PLANTATIONS 6,064.96 - 6.90MINING 308.02 unchFBMSHA 8,392.75 - 4.96FBMACE 4,342.45 + 42.31TECHNOLOGY 17.62 + 0.04

INDICES CHANGE

TURNOVER VALUE

1.296bil RM1.343bil

Shares closemixed, CI upSHARE prices on Bursa Malaysia closedmixed yesterday in the absence of mar-ket moving news, dealers said.

The FBM KLCI added 0.56 points toclose at 1,242.32, after opening 0.15 ofa point lower at 1,241.61.

However, a dealer said that follow-through buying interest was seen inselected bluechips like Maybank, HongLeong Bank and CIMB, which helped thekey index end higher. He said it was alsosupported by the overnight gains on WallStreet.

The Dow Jones Industrial Averagegained 76.71 points to 9,789.44 whilethe Standard & Poors 500 Index climbed6.69 points to 1,042.88.

The FBM Emas Index declined 2.979points to 8,318.9, the FBM Top 100 rose0.36 of a point to 8,115.39 while the FBM70 was 12.73 points lower at 8,097.66and the FBM ACE Index added 42.31points to 4,342.45. Bernama