Lloyds 'set to defend failed branch deal with the Co-operative'

18 June 2013

The chairman and chief executive of Lloyds Banking Group will reportedly produce evidence today (18 June) after claims the bank gave in to political influences when agreeing to sell the majority of its branches to the Co-operative Group.

Sir Win Bischoff, the bank's chairman, and Antonio Horta-Osorio, the chief executive, will appear before the Treasury Select Committee as it begins its inquiry into the deal's collapse.

Lloyds has submitted written evidence to the committee which contains proof that the deal was agreed for commercial reasons, without any pressure from the government, Sky News reports.

The evidence contains contemporaneous internal memos along with correspondence which Lloyds says demonstrates the decision to enter exclusive talks with the Co-operative was in the interests of shareholder value.

The bank has had accusations made against it claiming it was influenced by political ambitions and that it rejected a larger bid from the investment firm NBNK Investments for the branches.

By Gary Cooper

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development