Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.

Less Ads, More Data, More Tools Register for FREE

UPDATE 2-Credit Suisse veteran tasked with sale of UK bank stakes

Mon, 16th Sep 2013 14:29

* Leigh Pemberton, Credit Suisse CEO, appointed to key role

* State preparing to sell some of Lloyds, say sources

* Leigh Pemberton key advisor when banks bailed out in 2008

* Oliver Holbourn appointed UKFI's head of capital markets

By Matt Scuffham and Steve Slater

LONDON, Sept 16 (Reuters) - Britain's government has broughtin the UK boss of Credit Suisse to manage the sale of its stakesin Lloyds and Royal Bank of Scotland, hopingfor a successful turnaround after it had to bail both out withtaxpayers' money in 2008.

James Leigh Pemberton, currently UK chief executive ofCredit Suisse, has been named head of UKFI, theinstitution set up to manage the state's banking investments. Hewas one of the main advisers to the government when it pumped 45billion pounds ($71 billion) into RBS and 20 billion into Lloydsto keep them afloat during the 2008 financial crisis.

UKFI has already attracted criticism that it enables thegovernment to interfere too closely in banking affairs - notablywhen Stephen Hester was ousted as RBS chief executive in June atthe behest of the Treasury. Pemberton, 56, must keep lawmakersand regulators happy while also persuading bank bosses that hewill protect their interests as the government enforces newlevels of competition in the industry.

The Parliamentary Commission on Banking Standards, taskedwith recommending proposals to reform banks, in July called forthe abolition of UKFI, stating that its remit should be absorbedinto Britain's Finance Ministry. But the proposal was rejectedby UK Finance Minister George Osborne.

The son of a former Bank of England Governor, LeighPemberton's career in the City of London has spanned fivedecades since he joined SG Warburg in 1979, encompassing rolesin banking, capital markets and sales. He joined Credit Suissein 1994 and was appointed to his current role in 2008.

"His significant experience in the financial servicesindustry makes him the right person to take us through the nextphase of our plan for the recovery of Britain's banking system,"Osborne said on Monday.

Britain currently has an 81 percent shareholding in RBS anda 39 percent stake in Lloyds. Shares in Lloyds hit a 3-year highlast week and are now trading above the average price thegovernment bought at after sources with knowledge of governmentthinking said it could announce a sale of around a quarter ofthe shares this month. That would raise around 5 billion poundsfor the public purse.

The future for Royal Bank of Scotland is far less certain.

Britain's finance ministry is working with investment bankRothschild to examine whether RBS should be broken up - hivingits toxic assets into a so-called 'bad bank' and theoreticallyleaving the good bank better placed to lend.

UKFI said Leigh Pemberton would join in October, replacingJim O'Neil, who is stepping down as chief executive after threeyears. O'Neil, an equity capital markets expert, was expected tooversee share sales during his tenure but focussed largely onstrategic issues while the banks' share prices remainingdepressed. That could yet change before his departure, however.

Leigh Pemberton will become UKFI's executive chairman inJanuary, when current Chairman Robin Budenberg will leave. UKFIwill then scrap the role of chief executive.

UKFI also named Bank of America Merrill Lynch's Oliver Holbourn as its new head of capital markets. Holbourn iscurrently head of UK, Ireland and South Africa equity capitalmarkets origination at BofA Merrill.

Related Shares

More News
31 May 2024 12:59

CORRECT: Watchdog launches inquiry into Nationwide buy of Virgin Money

(Clarifying the acquisition is in cash.)

31 May 2024 10:03

UK watchdog launches inquiry into Nationwide-Virgin Money merger

(Alliance News) - The Competition & Markets Authority on Friday said it had opened an inquiry into Nationwide Building Society's acquisition of Virgin...

31 May 2024 08:34

UK competition watchdog probes Nationwide-Virgin Money deal

May 31 (Reuters) - Britain's competition regulator said on Friday it had started a probe into Nationwide Building Society's proposed 2.9 billion pou...

23 May 2024 10:44

IN BRIEF: Lloyds Banking to redeem USD1.5 billion senior notes

Lloyds Banking Group PLC - Edinburgh-based lender - Issues notice of redemption for entire USD1.50 billion outstanding principle amount of its 3.870% ...

16 May 2024 13:05

Activists disrupt Lloyds Bank shareholder meeting

LONDON, May 16 (Reuters) - Activists disrupted Lloyds Banking Group's annual shareholder meeting in Glasgow on Thursday, protesting against the bank...

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.