Banks plug pension deficits with 'toxic' assets

The method helps banks to make up the deficits in pension funds as liabilities grow, the Financial Times reports. Company reports reveal HSBC made a one-off payment of £1.76bn into its pension scheme in December 2010. The sum comprised of subordinated debt and asset-backed securities, among other components. Lloyds made a £1bn one-off payment into its staff pension fund, which is believed to have been a similar arrangement to that at HSBC. RBS is understood to have considered using the same method, but at the moment is only using cash to make up its pension deficit. Nobby Cla...