Thursday, 13 June 2013 09:25
Lloyds' senior executives to appear before Treasury Select Committee
The heads of Lloyds Banking Group are to give evidence to the Treasury Select Committee next week about the collapse of the deal with the Co-operative Bank.
Chief executive Antonio Horta-Osorio and Sir Win Bischoff, chairman, will appear before the committee next Tuesday 18 June.
The committee wants to review what happened in the collapse of the sale of 632 Lloyds TSB branches to the Co-operative Bank.
The acquisition by Co-operative Bank collapsed last month after Co-operative Bank withdrew from the deal. The firm blamed "the impact of the current economic environment, the worsened outlook for economic growth and the increasing regulatory requirements of the financial services sector in general."
The decision was a shock as the two firms had already agreed the terms of the deal and were awaiting regulatory approval.
Lloyds TSB is required to sell off 632 branches by the EC in return for receiving state help in 2008.
Lloyds has since said the branches will be split into a separate TSB Bank division, separate from Lloyds TSB.
Andrew Tyrie MP, chairman of the Treasury Select Committee, said: "This divestment should be an important opportunity to boost competition in the UK retail banking market. It could have significant benefits for consumers.
"We will want to know how the Co-operative Bank's bid was allowed to progress to such an advanced stage, why it collapsed and what will now happen to these branches and their customers."
• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.