Lloyd's Bank May Fail, Be Nationalized

Ministers have been warned they will be forced to take full control of Lloyds Banking Group after its shares fell by a third amid huge losses.

Britain's biggest high street bank shocked the City by announcing almost £11 billion of losses last year, more than twice what banking analysts had expected.

The Government already holds a 43 per cent stake in Lloyds after injecting £17 billion into the bank last year.