United Kingdom: HM Treasury

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Yale University EliScholar – A Digital Platform for Scholarly Publishing at Yale YPFS Documents (Series 1) Browse by Media Type 11-3-2008 New company to manage Government's shareholding in banks United Kingdom: HM Treasury Follow this and additional works at: https://elischolar.library.yale.edu/ypfs-documents Recommended Citation United Kingdom: HM Treasury, "New company to manage Government's shareholding in banks" (2008). YPFS Documents (Series 1). 9842. https://elischolar.library.yale.edu/ypfs-documents/9842 This Document is brought to you for free and open access by the Browse by Media Type at EliScholar – A Digital Platform for Scholarly Publishing at Yale. It has been accepted for inclusion in YPFS Documents (Series 1) by an authorized administrator of EliScholar – A Digital Platform for Scholarly Publishing at Yale. For more information, please contact elischolar@yale.edu. Home >  Newsroom & speeches >  Press notices >  2008 Press Notices >  November > New company to manage Government’s shareholding inbanks114/0803 November 2008New company to manage Government’s shareholding in banksArrangements for managing the Government’s shareholding in banks subscribing to its recapitalisation fund were announcedtoday by Chancellor of the Exchequer, Alistair Darling.The Government’s investments will be managed on a commercial basis by a new arm’s-length company, ‘UK FinancialInvestments Limited’ (UKFI), which is wholly owned by the Government. Its overarching objectives will be to protect andcreate value for the taxpayer as shareholder, with due regard to financial stability and acting in a way that promotescompetition.UKFI will work to ensure management incentives for banks in which it has shareholdings are based on maximising long-termvalue and restricting the potential for rewarding failure. It will also oversee the conditions of the recapitalisation fund,including maintaining, over the next three years, the availability and active marketing of competitively-priced lending to homeowners and small businesses at 2007 levels.Membership of the UKFI Board will comprise a private sector Chair, three non-executive private sector members, a ChiefExecutive and two senior Government officials from HM Treasury and the Shareholder Executive. Sir Philip Hampton hasagreed to become the UKFI’s first Chair and John Kingman will become Chief Executive. Both will take up these positionsshortly. The remaining private sector board members will be recruited expeditiously. These roles will be filled by individuals ofrelevant commercial skill and experience to enable UKFI to best meet the objectives set out above.In due course, the Government intends that UKFI will manage its investments in Northern Rock plc and part of Bradford &Bingley. These companies will continue to have their own independent Boards and management teams, determining theirown strategies.In addition to the recapitalisation fund and the credit guarantee scheme, the Government will continue work to ensure that alllenders do everything they can to support homeowners and small business during this period of financial market turbulence.back to topNotes for Editors1. The Government will be underwriting capital investments for RBS and, upon successful merger, HBOS and LloydsTSB, totalling £37 billion. 2. All three institutions subscribing to the Government’s bank recapitalisation fund will be seeking shareholder approvalfor raising their capital levels before the end of the year. The Government will then take shareholdings in these bankson the terms agreed on 13 October, subject to take up by existing or new shareholders of the ordinary shares and, inthe case of HBOS and Lloyds TSB, to the merger going ahead.3. Consistent with the agreements reached with the companies, UKFI will work with the Boards to strengthen theirmembership through the appointment of suitably qualified, independent non-executives. Final decisions will be takenhttp://www.hm-treasury.gov.uk/press_114_08.htm Go NOV DEC FEB042007 2008 200954 captures👤 ⍰❎f 🐦12 Nov 2008 - 24 Feb 2021 ▾ About this captureattracts and retains highattached to subscribing to the Government’s recapitalisation fund, including maintaining, over the next three years, theavailability and active marketing of competitively-priced lending to home owners and small businesses at 2007 levels. 5. The Government will not be a permanent investor in UK financial institutions and will over time seek to dispose of theinvestments in an orderly way, through sale, redemption, buy-back or other means, in accordance with the UKFI’sobjectives.6. Sir Philip Hampton was appointed Chairman of Sainsburys in July 2004. He was Group Finance Director of LloydsTSB Group plc from 2002 to 2004, Group Finance Director of BT Group plc from 2000 to 2002, and has held anumber of other Finance Director positions. In the 2004 Budget Philip Hampton was asked to lead a review ofregulatory inspection and enforcement. This review produced the Hampton Report , which informed the subsequentRegulatory Enforcement and Sanctions Act 2008.7. John Kingman is Second Permanent Secretary and Managing Director, Public Services & Growth, HM Treasury.Previous roles in the Treasury have included Managing Director, Finance and Industry and Director of the Enterprise &Growth Unit. John has worked on the Lex column of the Financial Times and in the Group Chief Executive's office atBP.  He has also been a Board Director of the European Investment Bank, a non-executive director of FramestoreCFC Ltd, and a Visiting Fellow at the Institute of Political and Economic Governance at Manchester University.Non-media enquiries should be addressed to the Treasury Correspondence and Enquiry Unit on 020 7270 4558 or by e-mailto public.enquiries@hm-treasury.gov.uk This Press Release and other Treasury publications are available on the HMTreasury website hm-treasury.gov.uk For the latest information from HM Treasury you can subscribe to our RSS feeds oremail service. Media enquiries should be addressed to the Treasury Press Office on 020 7270 5238.Back to topGo NOV DEC FEB042007 2008 200954 captures👤 ⍰❎f 🐦12 Nov 2008 - 24 Feb 2021 ▾ About this capture

New company to manage Government\u27s shareholding in banks

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New company to manage Government\u27s shareholding in banks

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