Wall Street bank Morgan Stanley has won a flagship deal to sell down a potentially sizable stake in Lloyds Banking Group – and will collect a fee of £1 for its work.

The terms of the sell-down contrast with the previous sales of Lloyds stock by the UK government. Most recently, Morgan Stanley, along with JP Morgan, Bank of America Merrill Lynch and UBS, sold a 7.5% stake in March via an accelerated book build.