Deutsche and Lloyds Rumour Resurfaces

Germany's 'Manager Magazine' suggested last week that a possible £80bn merger was being discussed once again.

A Lloyds spokesperson confirmed late last year that the two banks had held discussions in the past, but neither party have commented on the current rumours.

Analysts feel that a merger between the two giants would make little sense as they have little overlap and there would be very small cost savings.

Lloyds Bank were blocked by competition authorities from buying rival Abbey National last year and are known to be considering a bid in Europe. A tie up with Deutsche, however, looks unlikely.