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Asked if the Treasury was supportive of the Verde deal, he said: "I have absolutely no doubt that was the case".
Lloyds, though, is known to be keeping the option of a stock market flotation of the Verde business on the table.
Kickstarting the sale of the Verde branches was one of the first actions taken by António Horta-Osório when he became chief executive of Lloyds in March 2011.
The delay is owing to Lloyds' sale of the Verde branches to the Co-op breaking down, as a result of the latter's problems, and the failed branch sale talks between RBS and Santander.
Tryie wrote to Osborne yesterday asking: 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?
Fuerte River, Spanish Río Fuerte, river in northwestern Mexico, formed in Chihuahua state by the junction of the Verde and Urique rivers, and descending generally southwestward through Sinaloa state from the Sierra Madre Occidental to the Gulf of California, 27 miles (43 km) west of Los Mochis at Lechuguilla Island.
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One of these faults, the Verde Fault, runs directly under Jerome along the Jerome anticline.
He admitted he had not initially known about concerns raised by Lloyds about the capital position of the bank during the Verde talks.
Last year it collected £7.4 million in fees from the Co-op including £3.3 million for advising on its aborted purchase of the "Project Verde" bank branches from Lloyds Banking Group.
* - Anderson points out that the cost of the Project Verde deal has actually gone for good, rather than being a mere loan impairment.
There is also an architectural rendering by Jonathan Rose Companies of the Via Verde, an environmentally friendly and architecturally distinguished new apartment building that will serve as home for more than 200 working-class and poor families.
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