Lloyds may be forced to sell Halifax arm

Lloyds Banking Group may be forced to surrender its Halifax arm as a European Commission penalty for taking state aid, it was reported today.

The banking giant, which is 43% owed by the UK taxpayer, is said to be under threat of draconian measures by the EC in a move that would once more put Lloyds in the line of fire over its fated HBOS purchase.