By Jonathan Davies

The Chancellor George Osborne has rejects a request from MPs to supply information on the Co-op Bank's failed attempt to buy 632 Lloyds branches.

The proposed deal collapsed when a £1.5bn black hole was discovered in the Co-op Bank's finances, and led to somewhat over a meltdown over the past year.

The chairman of the Treasury Select Committee, Andrew Tyrie, penned a letter to the Chancellor enquiring whether or not there was "undue [political] pressure" applied to the Co-op bank to go ahead with the proposed deal, called "Project Verde".

In the first letter, dated March 26, Mr Tyrie said: "We would be grateful to know what was said, to whom, and when. "Did Treasury ministers or any Treasury officials at any time bring undue pressure to bear on the Co-operative Bank or Group, or Lloyds Banking Group, in respect of the sale of the Verde branches?"

In his response, dated April 3, the Chancellor reiterated the stance that there was no pressure from those involved.

He said: "At all times, both ministers and officials made clear to the FSA that the regulatory decision on whether to allow the Co-op/Verde deal to proceed ... was a matter wholly and solely for it. At no point did the Treasury seek to interfere in those judgements."

The Treasury Select Committee noted a lack of detail in George Osborne's response and again requested more information on April 9.

Mr Osborne said that any further information would only be provided to a full, independent investigation rather than the Committee.

"Any enforcement action might take many months or years to conclude. It is not reasonable to expect the committee to wait indefinitely for the information," Mr Tyrie told the Chancellor in July.

Join us on
Follow @freshbusiness