Why is the Government using our money to bribe a bank to puff up a new house price bubble?

Daily Mail
"Now, if reports are to be believed, the bankers are getting their own back. Lloyds Banking Group - that dog’s breakfast of an institution brought into being under Gordon Brown’s tutelage - owes us, the taxpayer, £4 billion, in the shape of preference shares that are supposed to pay a fixed dividend of 12 per cent, which ought to mean £480 million a year for the Exchequer.But it seems Lloyds would really rather not part with this money....
It so happens that the British Government does not want to swap debt for corporate control - it has no wish to own any more banks, having already wound up holding Northern Rock, Bradford & Bingley and Royal Bank of Scotland.
In the real world, Lloyds would have little choice but to put up with the situation. But in Bailout Land, a fantasy solution is, apparently, to hand. The preference shares can be converted into non-voting ordinary shares.In other words, the shares that carry no votes but which do carry a fixed interest payment will be changed into shares that carry no votes and carry no interest payments."