George Osborne kicks off search for a banking expert to handle sale of taxpayers' stakes in RBS and Lloyds

By Alex Hawkes, Financial Mail On Sunday

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Search: George Osborne is looking for a banking expert to handle the sale of the taxpayers' stakes in RBS and Lloyds

Search: George Osborne is looking for a banking expert to handle the sale of the taxpayers' stakes in RBS and Lloyds

George Osborne has kicked off the search for a banking expert to handle the sale of the taxpayers’ stakes in Royal Bank of Scotland and Lloyds.

The Treasury has appointed City headhunter Spencer Stuart to find a new boss for UK Financial Investments, the body that controls its holdings in the banks. The successful candidate is likely to face the job of selling the stakes.

City sources expect the Chancellor to fire the starting gun on a sale in his Mansion House speech on June 19, following the final report of the Parliamentary Banking Commission, which is  due early next month.

A new UKFI head is needed  after chief executive Jim O’Neil announced last month that he was leaving for Bank of America Merrill Lynch.

The Treasury owns 39 per cent of Lloyds and 83 per cent of RBS following the bailouts of 2008.Expectations of an early sale have risen in recent weeks. Lloyds shares briefly traded above 61p last week, the price at which the Treasury believes it will make a profit on the bailout.

Spencer Stuart was hired by UKFI in 2009 in a process that resulted in ex-UBS banker Robin Budenberg being appointed chief executive. He is now chairman.

The appointment of another banker as chief executive could raise the prospect of a conventional public offer for shares for the stake in RBS, as opposed to a share giveaway, which has been mooted.

In recent weeks there has been talk of a giveaway in which the public will be given the right to any profits on RBS shares above the price the Treasury paid – protecting the Government’s investment but also enabling it  to get the stake off  its books. The scheme is said to have  strong political support, but civil servants are thought to be sceptical.

One bank source pointed out that giving shares to every taxpayer would mean the banks could have about 40 million shareholders, creating an administrative nightmare. ‘We would need to hold meetings in Wembley stadium,’ the source said.



The comments below have not been moderated.

I see they've been back again, the dozen or so labour supporters left spend their day pressing red arrows. Bet they get paid loads of our money to do it as well.

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Somehow Osbourne has got to find a way of giving the taxpayer's money to the wealthy, so I wonder what sort of scam will be proposed?

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The sad socialist red arrow gang are more to be pitied than derided for they are the simple souls who always expect something for nothing, in fact they believe it is their God given right! That's why they always vote Labour because Labour foolishly pander to their extravagant expectations. But when they are disappointed, (as is inevitable because no party can ever fulfil their dreams), they always turn on Labour like a pack of ravening wolves. Fifteen years ago Blair was their great hero, now they despise and disown him; "He was never a socialist" is their pathetic, forlorn cry.

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......... has made 42 U turns in three years but who's counting and does it really matter? .............lol.... meaning Laugh out Loud if you didn't know! - fed.up, westminster, United Kingdom, 26/5/2013 18:46 ------------------------------- Who's counting? Well, apparently you are! Never mind didums you've probably got that wrong as well. If, just briefly, you could extract your head from where ever you have it buried and look around, you might learn something. For instance, while the massive mountain of debt (both national and personal) was being generated and while the bankers were behaving like uncontrolled masters of the universe the government of the country and therefore the ultimate responsibility for the mess was in the hands of... wait for it....LABOUR! If a bus driver fell asleep at the wheel and caused an accident I suppose you would blame the poor b----y passengers! LOL!

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- fed.up, westminster, United Kingdom, 26/5/2013 17:51----- If you are fed up and live in Westminister I have to ask "You are not an MP are you?" -- If you are just resign and get a real job.

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Has this article been a target of the sad socialist red arrow gang, I think so, what a ridiculous state of affairs.

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I was reading everyone's response, looks like George Osborne is red flagging everyone. Who else would agree with him. Lol

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Don't look at the banking industry lol you will only find failure there.

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DJ MazarrON Spain Thick as.............- fed.up, westminster, United Kingdom, 26/5/2013 DJ Mazarron in desperado land. Why have you not got a personal view on any subject? you just spout against the Labour party............your party has made 42 U turns in three years but who's counting and does it really matter? .............lol.... meaning Laugh out Loud if you didn't know! - fed.up, westminster, United Kingdom, 26/5/2013 18:46 ------------------------------------ If you were not so gullible you would be running down the Labour party as well. They were the government of theday while all the mess that is now the British economy was being created. Try getting it into your dull lefty head, the Labour government was responsible, THEY WERE THE GOVERNMENT. That means they were supposed to GOVERN not sit on their backsides and do nothing except to rake in their salary and massive expenses!

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Really disappointed my application has received no response. I work cheap (by banker standards) and am no more incompetent than the current job holders. I also don't need Limo service as I own a hyundai. PS paid for.

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