Lloyds says UK asset plan talks “going well”

Lloyds Banking Group said talks with Britain's government about the terms of a scheme to cap its losses on billions of pounds of risky assets were "advanced and going well", downplaying reports of a problem.

"Our talks with the Treasury are advanced and are going well," a spokesman for the bank said. "They are constructive discussions about what is by definition a complex but nevertheless very important subject."

Lloyds is expected to announce it will put more than 200 billion pounds ($282 billion) of assets into the scheme.

The Daily Telegraph reported on Wednesday the bank had had a major bust up over the terms. The newspaper, quoting individuals close to the bank, said Lloyds chief executive Eric Daniels felt so strongly about the issue he could quit.

"He (Daniels) is very committed to getting the best possible outcome for our shareholders. That is very much his sole focus," the Lloyds spokesman said.