UKFI chief Kingman quits 'stressful' post

SERIOUS concerns have been raised about the ongoing management of taxpayer investments in the UK banking sector after John Kingman said he was stepping down as chief executive of UK Financial Institutions.

Kingman had described the job as "the most stressful and demanding thing I have ever done", and will leave the 143,000 post once a replacement is found. It is expected he will then take up a role in the City.

His announcement came as Chancellor Alistair Darling said businessman and venture capitalist Sir David Cooksey was to take up the role of UKFI chairman.

Sir David will replace interim chairman Glen Moreno, and one of his first jobs in the 100,000-a-year post will now be to find a replacement for Mr Kingman.

The treasury insisted a new permanent management team at the arms-length company, set up to handle Britain's multi-billion pound stakes in the country's part-and fully nationalised banks including Royal Bank of Scotland and Lloyds Banking Group, would bring "stability".

But fears have been raised that there is now a management "black hole" at a body which looks after government investments worth up to 100 billion.

One city banker said he was "gobsmacked", adding: "You don't take a very responsible job at a time like this and jump after eight months to make money in the private sector."

Vince Cable, the Liberal Democrat treasury spokesman, said: "Mr Kingman is leaving at a time when it's clear the government hasn't really got a grip on the banks. His departure will leave a massive hole."

The UKFI said that Mr Kingman, a former Treasury official who led talks on last year's recapitalisation of the banking sector, had "decided to stand down to pursue other opportunities". He has been in charge since the body was formed in November.

Mr Kingman got off to a rocky start with politicians in March, when lawmakers said it was "scandalous" that he had failed to provide details of executive pay at the two banks. And broker Simon Laing said finding a replacement could prove difficult. "It is not going to be the most highly paid job because of the political fallout due to fat cats," he said. "They are on a hiding to nothing."

UKFI handles Britain's 70 per cent stake in Royal Bank of Scotland and its 43 per cent holding in Lloyds Banking Group, which it got after pumping 37bn into the lenders.

MERGER COSTS 60 MORE JOBS

ANOTHER 60 jobs have been cut as a result of the merger between the Bank of Scotland and Lloyds TSB, with 45 expected to go in Edinburgh.

The remainder of the losses will be in Rosyth, but all redundancies will affect backroom workers.

The cuts were announced yesterday as a result of the Lloyds Banking Group combining its HBOS and Lloyds TSB retail network offices to create a centralised Scottish centre.

The latest round of redundancies brings the bank's figure to 8,700 over the past 12 weeks.