It emerged that the EU would force Lloyds to sell a large chunk of its business to comply with competition rules following its merger with HBOS. It set an end-of-2013 deadline to complete a sale or float.
The Independent Commission on Banking (ICB) said in its interim report that Lloyds should “substantially enhance” its sale.
Lloyds kicked off the sale with minimal regard for Vickers’ demands after the Treasury made it clear it did not mind.
The ICB’s final report substantially watered down its demands.
The Co-op was named as preferred bidder over NBNK, the only other bidder.
Lloyds admitted it will not meet its first quarter 2012 deadline for signing a contract with the Co-op.