A sign from a branch of a Lloyds bank is reflected in a window in central London

UK watchdog says Lloyds must raise 8.6 billion pounds capital

By Huw Jones and Matt Scuffham LONDON (Reuters) - Lloyds Banking Group must plug a capital shortfall of 8.6 billion pounds ($13.5 billion), Britain's banking regulator said on Thursday, a day after the government signalled plans to return the part-state owned lender to the private sector. Britain is trying to restore confidence in a banking sector that had to be shored up by taxpayers during the 2…

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