Lloyds bank branch sale to Co-op collapses By Matt

By Matt Scuffham (Reuters) - The planned sale by state-backed Lloyds of hundreds of UK bank branches to the Co-op fell through on Wednesday, setting back government plans to boost competition in the industry. The Co-Op said it pulled out of the deal due to toughening regulations and the worsening outlook for UK economic growth. Lloyds, which is Britain's biggest retail bank and has over 2,900 branches in total, plans instead to spin-off the 630 branches under the TSB name and sell shares in the new company. ...