TIMELINE - Britain's banks strapped for cash

(Reuters) - Lloyds Banking Group (LSE: LLOY.L - news) launched a record 13.5 billion pound rights issue and along with rival Royal Bank of Scotland (LSE: RBS.L - news) has agreed to sell off some businesses to appease EU competition concerns over state aid.

Here is a timeline on banks in Britain since Northern Rock (LSE: GB0001452795.L - news) was nationalised.

February 21, 2008 - Britain passes legislation allowing the government to nationalise Northern Rock after rejecting two private bids. Northern Rock is nationalised months after the Bank of England stepped in to provide support.

April 21 - The BoE unveils the Special Liquidity Scheme to swap banks' risky mortgage assets for at least 50 billion pounds of government debt.

September 18 - Lloyds rescues Britain's biggest mortgage lender HBOS Plc in a $22 billion (13.5 billion pound) takeover with the government sweeping aside competition rules to ease the deal through.

September 29 - Bradford & Bingley (LSE: BB.L - news) , the country's ninth-biggest mortgage lender, is nationalised. The Treasury said it would take over B&B's 50 billion pound mortgage portfolio and sell its deposits and branches to Spanish bank Santander (Madrid: SAN.MC - news) .

October 13 - The government bails out three major banks - Royal Bank of Scotland, Lloyds TSB, and HBOS with a 37 billion-pound cash injection aimed at strengthening their capital reserves in the face of the credit crunch.

October 17 - Britain is forced to pump 20 billion pounds into RBS to shore up its capital position. Stephen Hester appointed to replace Fred Goodwin as chief executive.

October 31 - Barclay's raises 7.3 billion pounds mostly from Abu Dhabi and Qatar to repair damage from the global financial crisis.

January 19, 2009 - Britain launches a second bank rescue plan, under which the Bank will set up an asset purchase programme to buy private sector assets with a fund of 50 billion pounds.

February 26 - The Royal Bank of Scotland reports a loss of 24.1 billion pounds for 2008, the biggest in UK corporate history.

-- The government will inject a further 13 billion pounds, which could raise Britain's stake in RBS to as high as 95 percent.

-- The government asks Goodwin (LSE: GDWN.L - news) to give up an annual pension worth about 700,000 pounds.

February 27 - Lloyds, which bought HBOS in January, says HBOS made a 10.8 billion pound loss in 2008.

March 7 - Britain will get a stake of up to 77 percent in Lloyds after agreeing a deal to underwrite 260 billion pounds of risky assets, the bank says.

April 5 - Europe's biggest bank, HSBC (LSE: HSBA.L - news) announces a record 12.9 billion pound rights issue to bolster its capital ratio.

April 30 - Barclays (LSE: BARC.L - news) offers to exchange 3.4 billion pounds of bonds for debt of slightly higher quality to help strengthen its balance sheet after rivals including RBS, Lloyds Banking Group and Standard Chartered (LSE: STAN.L - news) made similar offers.

June 18 - Former RBS chief executive Fred Goodwin agrees to reduce his pension and will now receive an annual income of 342,500 pounds, down from 703,000 pounds.

August 5 - Lloyds sinks to a 4 billion pound first-half loss, battered by a surge in bad debts from its HBOS business.

June 8 - Lloyds says it will repay about 2.56 billion pounds to the government, which had pumped 17 billion pounds into the bank at the height of the financial crisis.

September 18 - Lloyds says it is in talks with government and financial regulators over alternatives to the asset protection scheme and that all options are open. Lloyds will insure 260 billion pounds of risky assets under the APS but it is regarded as an expensive option.

October 14 - FT reports that RBS is considering a government-backed plan to give up all 312 of its RBS-branded branches in England and Wales in a move to satisfy European competition regulator.

Oct 28 - EU approves a plan to break up Northern Rock, allowing Britain to eventually sell parts of the lender.

November 3 - Lloyds says it will raise 21 billion pounds via a 13.5 billion-pound rights issue and by swapping 7.5 billion pounds of existing debt for contingent capital which is convertible into equity.

-- Lloyds and RBS agree to sell off various businesses to satisfy competition concerns. RBS will sell 318 branches, with Lloyds disposing of more than 600 branches over the next four years.