'Sir Mervyn King: 'Too big to fail, too big to jail or simply too big'

The Chancellor, George Osborne, has used his annual Mansion House speech to the City to announce the government is preparing to sell its stake in Lloyds Bank back to private investors.

Mr Osborne said Lloyds - 39%-owned by the government - was in a good position and investor interest was growing.

The chancellor also announced that the outgoing governor of the Bank of England, Sir Mervyn King, is to become Lord King.

King said that rehabilitating the banks is a work in progress "It is not in our national interest to have banks that are too big to fail, too big to jail or simply too big".