Is Vic there?

The night is young, the mood is mellow and there's music in my ears....

Shareholders at the troubled Lloyds Banking Group might be pleased to hear that Sir Victor Blank is to step down as chairman.

Shareholders anxious to blame someone for the decision to buy HBOS at the worst possible time at the height of the banking collapse will be pleased he is to go. The acquisition of a bank that had an £11 billion debt in 2008 led Lloyds to take a greater share of taxpayer's funds and therefore government control than would have been the case had they avoided the deal. The Treasury owns 43 per cent of Lloyds. Poor Sir Victor Blank, up for re-election at the June 5th AGM would have had enough trouble convincing shareholders that the deal will eventually come good, that £1.5 billion of savings can be made this year, That he was the best man to continue in the job. He probably could have done without the sharp prick of a knife point between his shoulder blades.

One particular person was desperate for Sir Vic to buy HBOS last year and so prevent a second 100% government nationalisation of a bank. So desperate that the anti monopoly rules were ignored. It would have been thought that Gordon Brown would be more grateful to his man for pushing through a very controversial purchase.

Robert Peston thinks that UK Financial Investments, which manages the stake in Lloyds on behalf of the Treasury, well aware of shareholder anger and the demand for change,would have voted to remove Sir Blank at his re-election. So his stepping down is possibly just a realisation that the game is up and its time to go before being told to pack his things.