UK Financial Investments

UK Financial Investments (UKFI) is the body set up in late 2008 to manage the Government's investments in Britain's banks. On 3 November 2008 The Chancellor of the Exchequer announced that a new commercial company UK Financial Investments Ltd would manage the Government’s shareholding in banks subscribing to its recapitalisation fund.

Background

According to The Times, the plan to take direct stakes in the banks was made in October 2008 by "an informal network of bankers such as Robin Budenberg and David Soanes of UBS, David Mayhew, the JP Morgan chairman, and its chief executive, Naguib Kheraj. Many are connected to the powerful Business Minister, the former investment banker Baroness Vadera."

The Treasury announced that the company would be managed by a board comprising of a private sector Chair, three non-executive private sector members, a Chief Executive and two senior Government officials from HM Treasury and the Shareholder Executive. It stated that Sir Philip Hampton had agreed to become the first Chair and John Kingman the Chief Executive, and that "remaining private sector board members" would consist of "individuals of relevant commercial skill and experience".

Of the eight appointments so far announced by UKFI, six are known to have previously worked at one of the largest 116 banks, and insurance or securities companies from the Fortune 500.

People

Former Board Members

John Kingman, Chief Executive (November 2008 - July 2009): Kingman is a civil servant who had worked at H.M. Treasury in the early 1990s under the Conservative government, and was appointed Press Secretary to the Chancellor of the Exchequer in 1999. In the interim period he worked as a columnist at the Financial Times and at the Group Chief Executive’s office at BP plc. He left his position at UKFI to look for a job in private sector "once a successor is found, though he has no job to go to at the moment. Bar a brief stint as a commentator with the Financial Times and at BP, his entire career has been in public service. He was on a salary of £143,000 at UKFI." Later on he joined Rothschild.

Philip Hampton, First Chair (November 2008 - January 2009): Sir Philip Hampton is a business executive who was also the Chairman of J. Sainsbury plc (2004 - November 2009). Prior to that he had worked as Group Finance Director at Lloyds TSB Group plc and had previously worked at BT Group. On 16 January 2009 UKFI Sir Philip Hampton resigned as Chairman of UKFI to take up his appointment as Deputy Chairman and Chairman-designate of the Royal Bank of Scotland. He was replaced by Glen Moreno who became Acting Chairman.

John Crompton, Head of Market Investments (November 2008 - January 2010): On 27 November 2008 UKFI announced the appointment of John Crompton as Head of Market Investments. Crompton joined UKFI from Merrill Lynch where he is Managing Director and Head of Equity Capital Markets for Europe, the Middle East and Africa. He joined Merrill Lynch from Morgan Stanley where he had worked in a variety of roles since 1986. He also spent nearly two years on secondment to Her Majesty's Treasury as its senior corporate finance advisor from 2005-2007. He stepped down from his position at UKFI to be replaced by Robin Budenberg.

Glen Moreno, Senior Non-executive Director (January 2009 - July 2009): Moreno is Chairman of Pearson plc (October 2005 - present), and is also senior independent director of Man Group plc, where he has been a non-executive director since 1994. He was chief executive of Fidelity International from 1987 to 1991, and remains a director of the firm and chairman of its audit committee. Prior to joining Fidelity he spent 18 years at Citigroup in Europe and Asia.

Current Team

Tim Skyes, Senior Bank Analyst (December 2008 - January 2010), Head of Market Investments Strategy (January 2010 - present): On 22 December 2008 UKFI announced the appointment of Tim Sykes as Senior Banks Analyst. Sykes joined UKFI from Execution Ltd. Between 2003 and 2007 he worked at Standard Chartered Bank, prior to which he was an analyst at UBS.

Peter Gibbs, Senior Non-executive Director (January 2009 - present): Gibbs has more than 20 years’ executive experience in investment management, most recently as Chief Investment Officer for Merrill Lynch Investment Management outside the US. Since retiring from Merrill Lynch in 2005 he has held a variety of non-executive roles at financial companies – he is currently chairman of multilateral trading facility Turquoise and a non-executive director at Evolution Group and Impax Group.

Michael Kirkwood, Senior Non-executive Director (January 2009 - present): From 1999 to 2008 Michael Kirkwood was chief country officer for the UK at Citigroup Inc. He was also vice-chairman of the British Bankers' Association, President of the Chartered Institute of Bankers, Chairman of British-American Business and as a member of the CBI's Financial Services Council.

Lucinda Riches, Senior Non-executive Director (January 2009 - present): Riches is a senior equity capital markets banker with extensive experience in privatizations. She headed the global equity capital markets division at UBS until 2006.

David Cooksey, Chairman (July 2009 - present): Sir David Cooksey, who is currently chairman of London & Continental Railways (November 2006 - present), took over from Glen Moreno, "UKFI’s acting chairman who has been criticised for his involvement with a company allegedly at the centre of an investigation into tax evasion."

The Board

• David Cooksey, Chairman
• Robin Budenberg, Chief Executive
• Peter Gibbs, board member
• Michael Kirkwood, board member
• Lucinda Riches, board member
• Philip Remnant, board member
• Louise Tulett, board member

This article is part of the Revolving Door project of Spinwatch.

Resources

• Aldrick, Philip, "John Kingman quits as UKFI chief executive," Telegraph, 28 July 2009, accessed 03 April 2010.
• Elliott, Francis and Helen Nugent, "Treasury banks on City financiers to run Britain: The bankers who might be blamed for the credit crunch are being paid by Whitehall to save us from ruin," The Times, 30 January 2009, accessed 03 April 2010.
• 'Hampton, Sir Philip (Roy),' Who's Who 2009, A & C Black, 2008; online edition, Oxford University Press, Hampton, Sir Philip (Roy), December 2008, accessed 30 March 2009.
• HM Treasury, Letter from the Chancellor of the Exchequer to John McFall MP, Chairman of the Treasury Committee, 03 November 2008, accessed 03 April 2010.
• HM Treasury, "New company to manage Government’s shareholding in banks," Press Notice 03 November 2008, accessed 03 April 2010.
• J Sainsbury plc, Our management, accessed 03 April 2010.
• 'Kingman, John Oliver Frank,' Who's Who 2009, A & C Black, 2008; online edition, Oxford University Press, Kingman, John Oliver Frank, December 2008, accessed 30 March 2009.
• Treanor, Jill, "Government bank chief John Kingman quits," Guardian, 28 July 2009, accessed 03 April 2010.
• Treanor, Jill, "John Crompton resigns from UKFI," Guardian, 12 January 2010, accessed 03 April 2010.
• UKFI, "John Crompton joins UKFI," Press Release 27 November 2008, accessed 03 April 2010.
• UKFI, "UKFI announces appointment of four non-executive directors," Press Release 12 January 2009, accessed 03 April 2010.