** Smith & Williamson fund manager Mark Swain is removingshort position in Lloyds Banking Group as UK bankssurge on election win for Conservatives
** Swain, a co-manager of firm's long/short Enterprise fund,put short on ahead of election amid widespread fears of abreak-up of biggest banks & more hikes in a tax on their assets
** Labour had said it would increase bank levy, based onbanks' assets, by 800 mln pounds if it won election
** Lloyds up 5.4 pct at levels last seen Jan 2014 (havingearlier hit highest level since 2008 when govt began a bail-outthat put 41 pct of bank in state hands)
** UK banking sector, up 2.7 pct, poised forbiggest one-day rise since October & closing in on >1-yr highs (RM: tricia.wright1.thomsonreuters.com@reuters.net)