Lloyds branch sale runs into issues

Taxpayer-backed Lloyds Banking Group's sale of 632 branches to The Co-operative Group has run into difficulties as financial regulators question the level of expertise on the suitor's board.

The Co-op, which was named as Lloyds' preferred choice for the EU-enforced sale, reportedly held talks with Gary Hoffman, former boss of Northern Rock and current chief executive of bid rival NBNK, about joining to address the lack of banking experts.