Banks handling the piecemeal sale of the UK government’s stake in Lloyds Banking Group are having to deal with an inconvenient concept known as democracy. The government, hoping to gain electoral popularity, wants voters to be able to buy shares directly.

UK Financial Investments, which manages the government's stakes in bailed-out banks, is considering how to do this with the help of investment banks and lawyers. The banks, seeing this retail element as a nuisance, do not like it.