Lloyds ECN's

I owned LLoyds 14.5% ECN's since post-Halifax days. My Broker informed me that LLoyds were threatening/likely to redeem these at Par , £50,000 per unit , if I didnt dispose of them. This was due to the downgrading / change of security level carried out by the "prudential" regulatory finance authority. ie. they were then quoted at £1.25 to £1.35 per £50,000 trading unit.
So, I was effectively faced with getting par £1.00 (if I did nothing) and so losing out substantially. This is typical of the banking sector probably supported by the regulating authority.
END FINAL SCENARIO ???? (1) I sold and got £128 and


  • What your broker didn't tell you was it seems likely Lloyd's are on shaky ground legally and that this is very sharp practise , indeed there is an article on here by OB outlining opinion and concluding with additional purchases, the take up results today show a dismal return for their disgraceful behaviour and further moves by them will almost certainly result in legal challenges , as they would continue to pay during that process on the 14.5 you would likely get out what you may have lost at 128 , will be interesting to see.

    Granted you should not have had to take this decision , these instruments arose when cap in hand Lloyd's came to lenders to save their bacon and this is part of the way they repay them , so your feelings are quite understandable , more so as you may have been coerced into parting having had the price talked down by Lloyd's themselves.
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