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Lloyds Clashes With Regulators Over Dividend, Sunday Times Says

Lloyds Banking Group Plc’s plan to pay a first cash dividend since its 2008 bailout has sparked a dispute with regulators, the Sunday Times reported, without saying how it got the information.

The U.K.’s Financial Services Authority is threatening to block the payout to shareholders because the authority wants the lender to preserve its capital to protect against a possible breakup of the euro area, the newspaper said. Lloyds plans to pay the dividend in early 2014 from earnings generated in 2013, according to the report.

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