Co-op CEO Peter Marks: 'We're very disappointed'

The planned sale of 631 UK bank branches by Lloyds Banking Group to the Co-operative Group has fallen through.

The Co-op blamed the continued economic downturn and tougher regulatory environment imposed on banks.

Speaking to the BBC, the Co-op's chief executive, Peter Marks, said he was "very disappointed" that the deal has fallen through.

He insisted that the Co-op will stay in banking but that the current economic climate meant that "now is not the right time" to expand that side of the business.