500 jobs for Lloyds spin-off

Taxpayer-backed Lloyds Banking Group announced 500 new jobs today at a business it is being forced to spin off by European regulators.

Lloyds said it would add five UK support sites – in Gloucester, Livingston, Birmingham, Sunderland and Swansea – to the sale of its Verde business, which already includes 632 branches. The new jobs will be spread across the five sites.

The 40% state-owned bank was ordered by the European Commission to sell Verde because of the £20bn in state aid it received following the 2008 financial crisis.

The Co-operative Group remains the preferred bidder for the package, Lloyds said, but reports have suggested its suitor has run into difficulties with the City watchdog over a lack of banking expertise on its board.