Lloyds chief to step down

Lloyds Banking Group chairman Victor Blank is set to step down, it was reported today.

The board of the bank – 43% owned by the taxpayer – is meeting this morning and a statement is expected later today, the BBC says.

Blank and Lloyds chief executive Eric Daniels have been under pressure since Lloyds TSB’s rescue takeover of struggling HBOS at the height of the banking crisis last autumn.

Conservatively-run Lloyds TSB avoided the worst impact of the credit crunch, but HBOS has dragged it down with losses of almost £11bn (€12.3bn) in 2008 and the combined group will be loss-making this year.

Blank’s decision to step down could prevent an embarrassing protest vote against his re-appointment as chairman at the group’s annual meeting in Glasgow next month.

Lloyds Banking Group declined to comment.