Speculation that Lloyds TSB may sell its insurance and fund management arm, Scottish Widows, is "overblown", sources close to the bank say.
Rumours that Lloyds may sell Scottish Widows swept through the market on Monday after newspaper reports that the struggling unit - bought at the height of the stock market boom in 2000 - could be surplus to requirements.
The reports were sparked by a review of the business by new chief executive, Mr Eric Daniels.
"Overblown is the right word for these rumours. Eric is reviewing the firm as you would expect a new chief to do. No more, no less," said one senior source.
