Both Lloyds Banking Group and David Murray junior denied Rangers boss Walter Smith’s accusations that the bank rather than Murray International Holdings are running the troubled Glasgow club.

Speculation is rife that majority shareholder Sir David Murray will step down imminently while both Smith and his assistant Ally McCoist are out of contract in January.

Results on the pitch have a similar gloomy feel after the disastrous 4-1 Champions League defeat at home to Unirea Urziceni leading Smith to claim the uncertainty surrounding the club is distracting the players.

He said: “All the players have been up for transfer. If anybody is telling me that's a motivational factor for any player then they're living in another world from me.

“Now the bank have taken over the running of the club, they'll have their own ideas and obviously investment isn't one of them.”

But Lloyds were quick to issue a denial saying: “We would therefore like to be clear that Rangers FC is neither operated or run by Lloyds Banking Group.”

Smith Junior added his own rebuttal to Smith’s comments which he put down to ‘frustration’ which could further open the rift between the management and the board.