the chaos that might now ensue, Stephen would be justified in ignoring it. Henry was also able to persuade Hugh Bigod, the late king's royal steward, to swear that the King had changed his mind about the succession on his deathbed, nominating Stephen instead. Stephen's coronation was held a week later at Westminster Abbey on 22 December. Meanwhile, the Norman nobility gathered at Le Neubourg to discuss declaring Theobald king, probably following the news that Stephen was gathering support in England. The Normans argued that Theobald, as the more senior grandson of William the Conqueror, had the most valid claim over the kingdom and the duchy, and was certainly preferable to Matilda. Theobald met with the Norman barons and Robert of Gloucester at Lisieux on 21 December. Their discussions were interrupted by the sudden news from England that Stephen's coronation was to occur the next day. Theobald then agreed to the Normans' proposal that he be made king, only to find that his former support immediately ebbed away: the barons were not prepared to support the division of England and Normandy by opposing Stephen, who subsequently financially compensated Theobald, who in return remained in Blois and supported his brother's succession. Early reign (1136–1139) Initial years (1136–1137) Stephen's new Anglo-Norman kingdom had been shaped by the Norman conquest of England in 1066, followed by the Norman expansion into south Wales over the coming years. Both the kingdom and duchy were dominated by a small number of major barons who owned lands on both sides of the English Channel, with the lesser barons beneath them usually having more localised holdings. The extent to which lands and positions should be passed down through hereditary right or by the gift of the King was still uncertain, and tensions concerning this issue had grown during the reign of Henry I. Certainly lands in Normandy, passed by hereditary right, were usually considered more important to major barons than those in England, where their possession was less certain. Henry had increased the authority and capabilities of the central royal administration, often bringing in "new men" to fulfil key positions rather than using the established nobility. In the process he had been able to maximise revenues and contain expenditures, resulting in a healthy surplus and a famously large treasury, but also increasing political tensions. Stephen had to intervene in the north of England immediately after his coronation. David