OpenLegislation

Article 2

United Kingdom

Original text. Later amendments are not shown.

The conditions referred to in Article 1 shall be as follows:

  1. (i)

    there must be full operational separation between BankCo and AssetCo as soon as possible and by the end of 2010 at the latest;

  2. (ii)

    new lending by BankCo must be capped to GBP 4 billion in 2009, GBP 9 billion in 2010 and GBP 8 billion in 2011; in the event that BankCo remains in Temporary Public Ownership (hereinafter ‘TPO’) after 2011, a lending cap of GBP 8 billion must remain in place until 31 December 2013 or exit from TPO, whichever is earlier;

  3. (iii)

    BankCo retail deposit balances across the United Kingdom, Ireland and Guernsey must be capped at GBP 20 billion until 31 December 2011; in the event that BankCo remains in TPO in 2012 and 2013, the retail deposit cap must be GBP 23 billion for 2012 and GBP 26 billion for 2013 or exit from TPO;

  4. (iv)

    BankCo, must not rank within the top three Moneyfacts mortgage categories for 2- 3-, or 5-year fixed or variable mortgages (excluding mortgages with a loan-to-value ratio greater than 80 % and products for first time buyers) until 31 December 2011 or exit from TPO, whichever is earlier;

  5. (v)

    the UK government must exit majority ownership of BankCo […], in this context, TPO is deemed to be exited if the UK has sold at least 50 % + 1 of BankCo’s shares to a non State-owned or controlled entity (or entities) and the UK has lost control over BankCo within the meaning of Regulation (EC) No 139/2004;

  6. (vi)

    BankCo […] must give public notice that the UK retail deposit guarantee will be released by […] and that the wholesale guarantee arrangements related to BankCo will be lifted by the United Kingdom by 31 December 2010;

  7. (vii)

    existing subordinated debt must remain in AssetCo and no principal or coupons is to be paid on subordinated debt instruments where AssetCo is contractually able to do so, […];

  8. (viii)

    BankCo and AssetCo must not engage in acquisitions of shares in other firms or promote the Government guarantee arrangements or ownership;

  9. (ix)

    AssetCo must not undertake any new economic activities apart from the activities necessary to provide operational support to BankCo until the operational separation between BankCo and AssetCo is completed […].