Citi downgrades Lloyds TSB, sees UK recession

LONDON (MarketWatch) -- Citigroup downgraded British bank Lloyds TSB to hold from buy as it expects the U.K. to fall into a recession in the second half of 2008. It cut earnings estimates by at least 40% on Royal Bank of Scotland, Alliance & Leicester, HBOS and Barclays and retained sell ratings on HBOS and Barclays.