The incompetent state control has started. First the government threw tax payers money at the problem of bad banks. When that failed they essentially nationalised Lloyds on the cheap and threw all of its capital at the problem too.
How did the get Lloyds on the cheap? By dumping HBOS on them and telling them it was OK. After all the FSA wouldn't have let HBOS and Lloyds merge if they thought it was going to bring down Lloyds, would they?
Noe the government is telling Lloyds to lend more. Funny that because not so long ago, they told the banks they needed more capital, which was why Lloyds was short of capital.