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| Version 0 | Version 1 |
|---|---|
| Lloyds Bank chairman to step down | Lloyds Bank chairman to step down |
| (20 minutes later) | |
| Sir Victor Blank is to step down as chairman of Lloyds Banking Group. | Sir Victor Blank is to step down as chairman of Lloyds Banking Group. |
| The bank's board is meeting this morning and a statement is expected later today. | |
| It is expected that Sir Victor will have handed over to a successor by next year's annual meeting. The UK Treasury owns 43% of Lloyds. | It is expected that Sir Victor will have handed over to a successor by next year's annual meeting. The UK Treasury owns 43% of Lloyds. |
| Sir Victor and Lloyds' chief executive, Eric Daniels, have faced criticism for their decision last year to buy HBOS, the troubled owner of Halifax. | Sir Victor and Lloyds' chief executive, Eric Daniels, have faced criticism for their decision last year to buy HBOS, the troubled owner of Halifax. |
| HBOS made a loss in 2008 of almost £11bn and the two banks together are also expected to be in loss this year. | HBOS made a loss in 2008 of almost £11bn and the two banks together are also expected to be in loss this year. |
| Rebuilding process | |
| The government agreed to insure £260bn of the bank's toxic loans, and to potentially raise its stake in the bank to 65% earlier this year following the losses. | |
| The financial troubles at HBOS meant that Lloyds needed greater investment from taxpayers than would otherwise have been the case Robert Peston, BBC business editor Read Robert Peston's blog | |
| Lloyds' directors do not believe that Sir Victor would have been ousted by shareholders at the forthcoming annual meeting, according to the BBC's business editor, Robert Peston. | |
| But they feared that the constant speculation about his future would not end and they saw it as complicating the process of rebuilding the weakened bank. | |
| UK Financial Investments (UKFI), which manages the government's stake in financial institutions such as Lloyds and the Royal Bank of Scotland, was "acutely aware" of other shareholders' convictions that there had to be a change at the top of Lloyds, according to Mr Peston. | |
| UKFI felt it was better that the chief executive, Eric Daniels, should retain his job, because it feels there is a global shortage of decent banking executives. |