Page last updated at 10:49 GMT, Tuesday, 28 July 2009 11:49 UK

Nationalised banks' chief quits

John Kingman, Chief Executive of UK Financial Investments Limited
Mr Kingman will move to the private sector

The chief executive of the company set up to manage UK taxpayers' holdings in banks is to quit the job.

The decision by John Kingman to leave UK Financial Investments (UKFI) will surprise many, says BBC business editor, Robert Peston.

UKFI manages UK taxpayers' holdings in banks including Royal Bank of Scotland and Lloyds Banking Group and is now to run parts of Bradford & Bingley.

Private equity expert Sir David Cooksey has been named as UKFI's new chairman.

His departure is bound to be seen as part of a trend of individuals close to the Prime Minister who are leaving government and the public sector
Robert Peston
BBC business editor

"The taxpayer has made a substantial investment in the banks in order to preserve financial stability, and I will be focused on protecting the value of those investments and disposing of them over time," Sir David said.

He will appoint John Kingman's replacement when he takes up the chairman's role at the beginning of August.

Private sector replacement?

UKFI's acting chairman, Glen Moreno, praised Mr Kingman for "the substantial contribution he has made to maintaining financial stability in the UK through the recent crisis".

Mr Kingman is moving to the private sector, something he has wanted to do for some time, our business editor said.

His replacement may come from the private sector and demand a considerably higher salary than Mr Kingman's, who is paid as a senior civil servant.

The taxpayer has a 70% stake in RBS and a 43% holding in Lloyds.

It is intended that Northern Rock, which is wholly taxpayer-owned, will eventually come under the control of UKFI.

However this is being delayed by legal disputes over state aid, meaning it is currently being managed by the Treasury.

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