Page last updated at 07:41 GMT, Saturday, 22 August 2009 08:41 UK

Leading Questions: Sir Victor Blank

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The chairman of Lloyds Banking Group, Sir Victor Blank, saved the government from having to nationalise Halifax Bank of Scotland (HBOS) last year but later found himself out of favour with shareholders when the combined group saw its share price fall.

In this week's "Leading Questions" he tells Robert Peston that the bad loans on HBOS's books didn't come as a surprise to Lloyds - but what caught them out was how quickly they collapsed. That he blames on the speed of the economic downturn.

Sir Victor says he is disappointed at having to leave his role as chairman after a year because the shareholders - which include UK Financial Investments the body that manages the taxpayers stake in Lloyds - made it clear they would not support his re-election.

He says even though the Prime Minister, Gordon Brown, is a close friend he doesn't feel let down over this decision.

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