The Treasury Select Committee (TSC) of the UK government had been investigating the failed acquisition deal by Co-operative Group (Co-op) of hundreds of Lloyds Banking Group branches. The committee launched the investigation as concerns on why the acquisition deal pushed through was raised despite the current viability of the consumer cooperative at the time of the deal. A financial regulator had identified a GBP1.5 billion capital shortfall earlier in the Co-op's books.

Former Co-op chief executive Barry Tootell disclosed to lawmakers that the management at the time of the deal already knew about the irregularity during negotiations of the planned acquisition.

"There wasn't unanimous approval at all times. There were quite rightly questions about the viability of the deal," Tootell said to lawmakers.

Over 600 branches, known to Lloyds in its books as "Project Verde," were intended to be sold to the Co-op. Lloyds wanted to sell the branches to comply conditions of a state aid Lloyds received to fund a takeover deal. In late April, Co-op backed out of the GBP750 million deal and provided Lloyds an abrupt notice.