New Company Will Monitor Nationalised Banks
Alistair Darling has announced the formation of a new company to manage taxpayers' shares in nationalised banks.The holding company will be responsible for getting value for money from the £37bn injected into Royal Bank of Scotland, HBOS and Lloyds TSB.
It will also be charged with making sure the banks continue lending to homeowners and small businesses, and that they do not use public money to pay unjustified staff bonuses.
The chancellor announced the new company, called UK Financial Investments Ltd, during an appearance in front of the Commons Treasury committee on Monday afternoon.
He said UKFI would "probably" also take care of the nation's investments in Northern Rock and Bradford & Bingley.
The first chairman will be Sir Philip Hampton, the chairman of J Sainsbury and former group finance director at Lloyds TSB.
Darling said he expected restraint in bonus payments across the banking sector.
"We don't actually expect many bonuses to be paid at all in the banking sector next year," he said.
Photo:
Alistair Darling
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