British bank Lloyds stated that there have been no political pressures on the company to sell hundreds of its branches. However, a rival bidder thinks that there was political influence for Lloyds to sell its branches to the Co-operative Group.
Lloyds Chairman Win Bischoff told lawmakers on Tuesday that the board of the company looked at the financial stability and the ability to execute the sale. He also added that the board was not politically influenced.
The Treasury Select Committee questioned the executive at Lloyds on their decision. This was after selling 632 branches to the Co-op rather than having bidding rival NBNK acquire it. NBNK made a higher offer compared to the Co-op.
In written evidence, former NBNK chairman Peter Levene told the committee that there appeared to be political interference throughout the bidding procedure.
In April, the Co-operative Group withdrew its bid to acquire the branches. This was after it was found out to have capital shortfall estimated at GBP1.5 billion according to Britain's financial regulator.
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