Many economists have claimed that international bank, Lloyds has adopted clever strategies for its recent operations, whereas some of them believe that the bank is heavily exposed to the bad economic situation. The bank experienced a loss of £3.47bn in the first quarter and its shares also fell on the stock exchange.

Leading banks; Barclays Plc, Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc have lifted up the U. K. stocks. Barclays rose by 3.6% and closed at 287.5 pence. Royal Bank of Scotland notched up by 3% to 42 pence and Lloyds Banking Group rose by 2.1% and closed at 59.3 pence.

Shares worth two billion pounds were slashed down upon yesterday from the value of the Lloyds Banking Group the previous day, by its share holders.

This incident succeeded the unveiling of four decimal three billion pounds worth of bad debts. Most of these debts came in from Ireland as aftershocks from the troubled acquisition of Halifax Bank of Scotland.

The impact of new write downs caused the RBS's to slip by 5.7pc to 37.82p and the Lloyds shares closed at 66.5p.

Lloyds issued a statement that in Ireland the market conditions has further worsened and 10pc of its £26.7bn portfolio of Irish loans would be further vitiated by the end of the current year.

The Independent Commission on Banking (ICB) threatens Lloyds Banking Group as it potentially could reverse Lloyds' takeover of HBOS two years ago.

A potential annulment might be decided upon by the government due to the fact that the retail banking sector is completely led by a small number of major players.

NBNK Investments is converting into new banking business and has raised £50 million from Initial Public Offering to carry on the operations of 600 branches in the UK. The venture is an initiative of Lloyd's of London Chairman, Lord Levene and Sir David Walker, who appraised the corporate governance in the UK banking industry recently.

The Bank of Scotland took on an ambitious plan to increase its profits by picking up stakes in Companies to which they were providing loans. This plan was started in the year 2000 and had completed 115 deals, worth £10bn by the year 2007.       

According to a recent report, Lloyds Banking Group has declared that closures and streamlining will result in reduction of 650 jobs.

There will be closure of its insurance office in Nottingham and in the course of its reduction of operations there will be many job losses. The move will have an impact on around 1,850 workers.

Shareholders of Lloyds are going to take legal action against the Treasury and the Directors of Lloyds TSB over claims that important information related to HBOS's finances was concealed from them.

The company, whose 41% ownership belongs to the U. K. Government after its £17 billion bail-out in October 2008, said its trading performance has been sturdy in the first 10 weeks of 2010, which was established by good income growth, lower-than-expected mutilation supplies and a tight lead on costs.