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Hampton, who was forced to defend his appointment as a non-executive director to mining group Anglo American, had urged shareholders to support the array of resolutions at the meeting, warning the bank would have to be fully nationalised without the APS, which will take the taxpayer's stake from 70%to83%3%.
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As its share price dived, speculation mounted that Lloyds, which is now 43% owned by the British taxpayer, may have to be fully nationalised.
The government today admitted that the £1.1bn Olympic Village would be fully nationalised after private sector interest in the scheme evaporated in the wake of the economic slump.
They closed at 56.4p, down more than 8% and 5p, reflecting fears that the bank, formed from the emergency takeover of HBOS by Lloyds TSB and already 43%-owned by the government, may be fully nationalised.
The collapse of the long-planned deal will further delay the bank's return to private ownership and raises further speculation that RBS may have to be fully nationalised.
The potential for market distortion if these two were fully nationalised is huge: LBG alone accounts for 18% of deposits and 28% of mortgages.
Few banks have been fully nationalised; most remain listed with largely independent management; most state investments are in the form of non-voting shares.
Two banks – Northern Rock and Bradford & Bingley – are fully nationalised, while the taxpayer has a large stake in two others: the Royal Bank of Scotland and Lloyds.
Nordbanken, the seed of today's Nordea, was fully nationalised in 1992 and partly refloated three years later but the Swedish state remains its largest shareholder.The Swedish policymakers' task was also less daunting.
In an interview with the BBC, Sants also raised the idea that Royal Bank of Scotland and Lloyds Banking Group should have been fully nationalised in 2008 rather than left with partial listings on the stock market.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com