The Lloyds banking group has angered city shareholders after it was declared yesterday that it would receive a government bailout, backed by the taxpayer, of £260bn.
The government now owns a majority stake in the group- a move met with resistance by LBG's chairman Sir Victor Blank and chief executive Eric Daniels.
Both helped with the last year's merger of Lloyds TSB and HBOS and are now in threat of losing their jobs- a decision that could weaken the position of the bank further.
A meeting this week between shareholders and the LBG will discuss the 80% of bad loans attained by the group through the HBOS merger. The loans were put in a scheme yesterday that will let banks insure themselves against any losses from toxic assets The Guardian reported.
The Lloyds and HBOS merger has been largely criticised by shareholders who believe that the move was a wrong decision that will bring Blank and Daniels under strain. A group shareholder said: 'That was a transaction they negotiated and recommended to shareholders, and it has turned out to be disastrous'.