Chairman of Lloyds will leave in a year as shareholders chafe at HBOS purchase

A British paper reported on Sunday that the chairman of Lloyds Banking Group PLC Sir Victor Blank will leave his position amid criticism over the purchase of struggling bank HBOS. Sky News and the BBC, meanwhile, said the bank's board was meeting Sunday morning.

Blank has been under pressure of shareholders since he agreed to the Lloyd’s acquisition of ill-fated HBOS that earlier this year posted a full-year loss of 7.5 billion pounds, said the Sunday Telegraph.

While Blank will remain in his post for about a year the paper reports that the search for a replacement him will start immediately.

It should be recollected that the UK government suggested Lloyds to purchase HBOS to prevent it from collapse. Meantime the expanded Lloyds Group, in turn, found itself in need of the state bailout money. This resulted in that the British government holds 43.4% of group shares.