UKFI appoints James Leigh-Pemberton as new head

Royal Bank of Scotland branch in London The government took stakes in RBS and Lloyds during the financial crisis

Related Stories

UK Financial Investments, the Treasury unit that manages the government's stakes in RBS and Lloyds, is to be run by the son of a former Bank of England governor.

James Leigh-Pemberton, son of Robin Leigh-Pemberton, is taking up the post.

He will be the fourth person to head UKFI since it was created in 2009, replacing Jim O'Neil, who said in April he was stepping down.

Mr Leigh-Pemberton is currently the UK head of Credit Suisse.

Stake sale

UKFI was set up after Royal Bank of Scotland and Lloyds were bailed out with £66bn ($101bn) of taxpayers' money during the 2008 financial crisis.

The government owns 81% of Royal Bank of Scotland and 39% of Lloyds.

Mr Leigh Pemberton was one of the main advisers to the government when it intervened and took the stakes in the banks. His main job now will be to sell those holdings.

In June, the government said it was preparing to sell its stake in Lloyds back to private investors.

The divestment will be carried out in chunks, with the first sale expected to be worth £5bn.

The government is not expected to attempt to start selling its stake in RBS for at least another year.

'Honoured'

Mr Leigh Pemberton will also become UKFI's executive chairman in January when the current UKFI chairman Robin Budenberg will leave. The organisation will then abolish the role of chief executive.

Mr Leigh Pemberton said he was "honoured" to have been asked to take on the role.

Mr Budenberg called him "uniquely well qualified".

Mr O'Neil, who has been UKFI's chief executive for three years, is moving to a post at the US investment banking giant, Bank of America Merrill Lynch.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

From BBC Capital

Programmes

  • European Union's anti-terrorism chief Gilles de KerchoveHARDtalk Watch

    Anti-terrorism chief Gilles de Kerchove on the threat from returning Islamic State fighters

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.