Lloyds bosses face calls to quit

Bosses of Lloyds Banking Group were facing calls to quit today as the stock market prepared to give its verdict on the latest multi-billion pound bailout by the British taxpayer.

Chairman Victor Blank and chief executive Eric Daniels are under pressure from shareholders angered by the rescue deal, which will see the UK government’s stake upped from 43% to a controlling interest of at least 65%.

Roger Lawson, chairman of the UK Shareholders’ Association (UKSA), which represents private investors, said Lloyds investors were left paying the price for a “disastrous” move to buy troubled HBOS.

“The general view of Lloyds investors is that Sir Victor Blank and the rest of the board should go,” he said.

Mr Lawson added: “The key concern is that ever since Sir Victor and Eric Daniels decided to take over HBOS, it has been a disaster.

“Clearly it was a mistake and the end result is that shareholders no longer own the company – the government does.”

The UKSA said it would be meeting today to decide what action to take, and hopes investors will be able to have their say when the latest Lloyds state rescue comes up for shareholder vote.

Stock markets will also open for the first time since the UK government announced on Saturday that it had agreed to underwrite £260bn (€289bn) of Lloyds’ “toxic” assets, following weeks of wrangling.

Lloyds chiefs have also agreed to provide £28bn (€31bn) of extra mortgage and business lending over the next two years to help drag the UK out of recession.

The UK government already owns a near-70% stake in rival group Royal Bank of Scotland after a similar rescue package finalised earlier this year.