BISCHOFF A FRONT RUNNER TO LEAD LLOYDS

He is one of the leading names out of four or five being considered for the job by Lloyds and UK Financial Investments, the Government body responsible for managing the State’s 43.5 per cent stake in the bank.

However, sources said no one had been approached for the job yet and the process still had some way to go.

It was reported that former Standard Chartered chief executive Lord Davies has also been approached but is believed to have turned down the opportunity.

Bischoff, 67, is a City grandee. He was chairman of US banking giant Citigroup until February after joining the bank when it took over Schroders. Lloyds has been seeking a new chairman since Sir Victor Blank was ousted last month.

Bischoff’s appointment could prove good news for chief executive Eric Daniels. The two men know each other and it is thought Bischoff would be reluctant to ditch him.

In taking this view, he might be in conflict with other Lloyds shareholders who think Daniels ought to go once a new chairman is established. Lloyds shares fell 1¾p to 68¼p.