NW heavyweight Blank to quit Lloyds
TROUBLED Lloyds Banking Group is looking for a new chairman today after the resignation of Stockport-born City grandee Sir Victor Blank.
Sir Victor – who has been criticised over Lloyds disatrousd merger with HBOS last year – announced he would retire from the part-nationalised bank before its annual meeting next year.
Sir Victor – who said it was “the right time for the group to appoint a new chairman” – is an old boy of Stockport Grammar School, who has chaired some of the country’s best-known businesses including GUS and Trinity Mirror.
Lloyds will be loss-making this year as a result of soaring bad debts at HBOS.
Sir Victor said: “I will continue working until my successor is appointed to ensure the successful integration of the two banks. This remains – in the medium term – a unique value-enhancing opportunity.”
Lord Leitch, who was appointed deputy chairman of Lloyds with immediate effect said:”We are very sad about Sir Victor’s personal decision to retire, although we respect and understand his reasons for it.”
Chief executive Eric Daniels said: “Victor has played a very important role as our chairman during a period of significant change for our company and at a time when there has been unprecedented volatility in the markets.”
Sir Victor’s decision to retire comes amid mounting pressure from investors and doubts over the wisdom of the takeover.
Lloyds was a conservatively run bank known for its strong dividend payouts and risk controls before its rescue of HBOS last September.
The Government now owns 43% of the combined bank and will insure £260billion of its toxic loans. Sir Victor, who earned £669,000 last year, is a former corporate lawyer.
