Head of toxic asset scheme named

The Treasury says the Asset Protection Scheme is central to stabilising the financial sector

The Treasury has appointed Stephan Wilcke, a former private equity executive, to oversee its insurance scheme for banks' toxic assets.

Mr Wilcke was named as chief executive of the Asset Protection Agency and will take up the post on 28 September.

The Asset Protection Scheme was launched in February to restore confidence to the banking sector.

In return for an insurance premium, it guarantees banks against 90% of losses beyond a certain point on bad debts.

RBS was the first bank to sign up to the scheme. It said it would put in £325bn of toxic assets. Lloyds Banking Group said it would also take part in the programme.

ASSET PROTECTION SCHEME Taxpayers underwrite banks' bad debts Essentially an insurance scheme Banks pay a fee to take part Banks are liable for initial losses, similar to paying the excess on an insurance claim

"The Asset Protection Scheme is a central part of the Government's efforts to stabilise the financial sector and promote the flow of credit in the economy," said Treasury minister Lord Myners.

"The announcement of the Asset Protection Agency's chief executive is an important milestone as we move towards implementation of the scheme."

Mr Wilcke is currently a senior adviser credit asset manager Cairn Capital. He had previously been a partner at private equity group Apax Partners.