Lloyds Banking Group is expected to launch the initial public offer of its TSB subsidiary next week, according to sources quoted by Reuters. The bank is rumoured to be prepared to accept a loss when it floats TSB on the London Stock Market in the next few weeks due to a reduction in investor interest in flotations.Because the IPO market has become somewhat saturated in recent weeks after a surge earlier in the year, the bank is expected to float only 25% of TSB and to sell shares for less than current book value. TSB is currently valued at £1.5bn.Lloyds, which is 24.9% owned by the government, was ordered by the European Commission to sell TSB's 631 branches following its £20.5bn state bailout during the 2008/09 financial crisis.AB