Lloyds Banking Group is considering raising 15 billion pounds - about $24 billion - in what would be the biggest rights issue in U.K. history to keep the government's stake in the company below 50 per cent, according to a report in the Financial Times.

The newspaper, quoting unidentified sources, said Lloyds was sounding out investors over the cash call, which would eclipse HSBC's record 12.5 billion pound rights issue earlier this year.

Lloyds also is looking at selling some assets, such as the Scottish Widows insurance business, the Financial Times said.

The bank is seeking to back out of the government's Asset Protection Scheme, which would insure some potential losses on bad loans but at the cost of raising the government's current 43.4 per cent stake in the company above 50 per cent.

A 15 billion pounds rights issue would call for the government to inject a further 6.5 billion into the company to keep its stake at 43.4 per cent.

On September 18, Lloyds announced that, ``in light of improving economic conditions,'' it was negotiating with the government about changing the terms of participating in the program. Alternatives included insuring fewer assets or not participating at all.

Lloyds Banking Group was created earlier this year when Lloyds TSB took over Halifax/Bank of Scotland in a government-backed rescue. Toxic assets held by HBOS, particularly by mortgage specialist Halifax, forced the company to seek a government bailout.