LONDON (AP) — UK Financial Investments, the company set up by the British government to oversee state bailout investments in banks, said yesterday it will back all resolutions proposed at a Lloyds Banking Group PLC shareholder meeting this week.

That means that UKFI, which has a 43 percent stake in Lloyds, will support a proposal to re-elect chairman Victor Blank, who has been criticised for his role in the controversial takeover of rival HBOS last year.

"UKFI has made clear that we fully support the Lloyds board, strategy and executive team led by Eric Daniels," the company said in a statement, referring to the bank's chief executive officer.

"We have decided to vote in favor of all resolutions" at Friday's annual general meeting, it added. The government bailed out Lloyds late last year after it got into trouble by taking over Halifax/Bank of Scotland.

In response to shareholder unhappiness, Blank has already said he will step down next year. Blank and Daniels have insisted that they believe the HBOS deal will pay off in the longer term.