Lloyds Banking Group's sale of more than 600 branches to the Co-operative Group has collapsed.
Part-nationalised Lloyds, which is being forced by Europe to sell the branches after its £20 billion taxpayer bailout during the financial crisis, will instead pursue a stock market flotation for the division this summer.
The Co-op has reportedly struggled to plug a £1 billion capital gap needed to complete its takeover of the 632 Lloyds branches, blaming the weak economic outlook and heavy regulatory burdens.
More top news
A Branislav Ivanovic header in extra-time ensured that Chelsea are through to the Capital One Cup Final after beating Liverpool
Scientists have discovered the oldest known earth-size planets discovered which they say raises the prospect of 'ancient life'.
Auschwitz survivor Alina Dabrowska was a victim of the cruel experiments of Nazi doctor Josef Mengele, known as "the Angel of Death."