UKFI head quits as chairman joins

Wednesday, July 29, 2009

The government's management of the bailed out banks was thrown into question when it was announced that John Kingman was to resign as chief executive of UK Financial Investments (UKFI).

Kingman, seconded from the Treasury by the government at the end of last year to manage taxpayers' stakes in Royal Bank of Scotland, Lloyds Banking Group, Bradford & Bingley and Northern Rock, said he wants to work in the private sector. However, his resignation comes just 24 hours after Alistair Darling had his tête-à-tête with the banks and its timing is likely to be questioned.

Kingman said: "I have tremendously enjoyed leading UKFI over the last year and think the organisation is now very well placed to deliver its mission of protecting and creating value for the taxpayer."

Liberal Democrat Treasury spokesman Vince Cable said: "Mr Kingman is leaving at a time when it's clear the government hasn't really got a grip on the banks. His departure at this time will leave a massive hole."

At the same time, Sir David Cooksey has been appointed as new UKFI chairman, replacing acting chairman Glen Moreno. Cooksey said: "The taxpayer has made a substantial investment in the banks to preserve financial stability and I will be focused on protecting the value of those investments and disposing of them over time."