Victor Blank

Born in 1942,[2][3] he was educated at Stockport Grammar School and then obtained an MA in Modern History at St Catherine's College, Oxford.[5]

In 1969, aged 26, Blank was made the youngest Partner in the history of legal firm Clifford-Turner (now Clifford Chance). At Clifford-Turner he specialised in corporate law, and co-wrote a textbook on mergers titled Weinberg & Blank on Take-overs and Mergers. He left Clifford Turner in 1981 to become Head of Corporate Finance at Charterhouse Bank (now part of HSBC), where he masterminded the buyout of Woolworth's.[6] From 1985 to 1996 he held the posts of chairman and Chief Executive of Charterhouse.[4] He was also a Director of the Royal Bank of Scotland from 1985 to 1993.[7]

In 1999, Blank was appointed Chairman of Mirror Group Newspapers[8] which, during his tenure, became the UK's largest newspaper publishing group as part of the Trinity Mirror conglomerate.[9]

From 1993 to 2006, he was Vice Chairman and then Chairman of Great Universal Stores plc, a conglomerate in the FTSE 100,[10] which was separated into four different companies (Experian, Argos & Homebase, Burberry and Lewis Stores), the shares of which were distributed to shareholders. He was made Chairman of GUS in 2000.[11]

He was knighted in 1999 for services to the financial industry.[4] In May 2006, Blank became Chairman of Lloyds TSB which, in 2008, took over Halifax Bank of Scotland (HBOS) to become the U.K.'s largest retail bank.[12] He was a member of the Financial Reporting Council from 2002 to 2007, and a member of the Council of Oxford University from 2000 to 2007. He was appointed a senior adviser to US private equity group TPG Capital in November 2007. From 2000 to 2006 Blank was also Chairman of the Industrial Development Advisory Board.[13]

In 2010, Blank was appointed as a UK Business Ambassador by the government to promote British commercial interests around the world. After the election in 2010 Blank was invited to continue as a Business Ambassador by Prime Minister David Cameron.[14][15]

Blank and former Lloyds TSB chief executive Eric Daniels, have both been recipients of letters from Lloyd's shareholders who are members of the Lloyds Action Now Association. The letters represent a campaign on behalf of 7,000 private shareholders claiming compensation for their losses arising from the HBOS takeover. They stipulate that, information concerning a £25.4 billion Emergency Liquidity Assistance loan from the Bank of England to HBOS,[16] which was made to keep it afloat before the takeover, was not declared in takeover offer documents on which they were asked to vote. They stipulate that, had this loan been declared, then the true financial state of the bank would have been made apparent.[17]

When the credit crisis overwhelmed Northern Rock, the entire British banking industry came under intense scrutiny. Lloyds TSB stood out thanks to its conservative policies which had largely kept it out of the so-called "toxic securities" dealt in by other banks with riskier business models. Prime Minister Gordon Brown supported Lloyds in its acquisition of HBOS, a huge but struggling bank, in order to help stabilise the UK banking system.[18]

Blank, on behalf of the Lloyds TSB board, talked to Prime Minister Gordon Brown about permitting the merger to go ahead. Initially, it was thought that the merger would not be permitted due to existing competition law which prohibits mergers of this size and nature to go ahead. However, due to the nature of the credit crisis and the need for immediate action to save HBOS, Gordon Brown said that he would waive the competition law and ensure the merger went through.[19] On 15 September, an agreement was reached in principle, and the FSA began moves the following day.[3]

On 19 January 2009, the merger between Lloyds TSB and HBOS formally took place with the adoption of a new name for the combined group – "Lloyds Banking Group" – with Blank as its chairman. Because of the state of the financial markets at the time, if the merger had not gone ahead, there would have been an almost total meltdown of confidence in the British banking system as a whole.[20]

On 12 February 2009, the CEO of Lloyds group, Eric Daniels, was questioned about the banking crisis during a session of the Treasury Select Committee of the House of Commons. One of the key issues concerned Lloyds' takeover of HBOS in 2008, and the amount of due diligence carried out before the acquisition. Mr Daniels stated that a company would always like to do more due diligence on when assessing another company, but there are limits on how much is possible prior to an actual acquisition. Losses were a little higher than the £10 billion expected because of crash in the housing marked which wrote-off substantial property loans.[21]

Blank confirmed in an August 2009 interview with the BBC's Business editor, Robert Peston[22] that losses had been "at the worst end of expectations". He made it clear that what had surprised the Lloyds board was not the amount of financial losses, but the speed at which they had happened. Blank claimed that this was due to the unexpectedly sharp contraction of the world economy in the last quarter of 2008.

Investors were angered at the decline in the share price and the substantial losses they were suffering coupled with Blank's dismissal of the notion of a dividend payment.[23] Blank had told Jeff Randall the payment of a dividend to shareholders would not have been – as he put it – "seemly" – and in any case a dividend blocker had been applied by the Government for 2009.[24]

On 17 May 2009, Blank announced that he would be retiring before the next Annual General Meeting and that Lloyds should immediately begin the process to find a successor. He agreed with the board to serve 6 months notice, whilst they started the process of finding a successor. Once a successor was found, Blank agreed to stay for 4 months. Although he was entitled to 6 months salary, Blank suggested that the last two month's wages be donated to charity.[25]