U.K. government takes controlling stake in Lloyds Banking

LONDON -- Lloyds Banking Group PLC says the British government has become a majority shareholder in the bank in exchange for insuring $367 billion in risky assets.

The deal, announced Saturday, raises the government's interest in the group from 43.5% to 65%.

The group says it will increase lending by $39 billion)over the next two years. The majority will be business lending.