Widows dumps chief executive

SCOTTISH Widows chief executive Mike Ross walked the plank today - just weeks before parent Lloyds TSB is expected to be heavily fined and reprimanded over the mis-selling of precipice bonds.

Ross, 57, who is also deputy chief executive of Lloyds TSB, will receive compensation for loss of office of at least £478,000 plus bonuses.

Ross's successor is Archie Kane, the bank's current operations and IT director. Lloyds stressed there was 'no connection' between Ross's departure and any fine from the Financial Services Authority, which is expected imminently.

The bank has set aside about £100m to compensate up to 50,000 people sold the bonds. These were marketed under the Scottish Widows brand name and promised high yields but gave no guarantees over the principal.

Bank of Ireland today raised the prospect of branch closures and job losses at BoI and Bristol & West after saying it expected to slash £30m from its annual UK costs.