Financial Regulatory Forum

UK government banker quits key role in RBS, Lloyds stake sale

By Steve Slater and Douwe Miedema

LONDON, Jan 11 (Reuters) – The banker tasked with selling Britain’s stakes in Royal Bank of Scotland (RBS) and Lloyds quit in a surprise move on Monday, a potential blow to the government’s hopes of turning a profit on the holdings.

UK Financial Investments, the body that holds Britain’s stakes in the two part-nationalised banks and nationalised Northern Rock, said John Crompton had resigned as head of market investments.

Crompton did not leave as the result of any internal conflict and he will return to the private sector, two people familiar with the matter said. His exit comes after he failed to get the job of chief executive vacated by John Kingman in November.

“We are obviously sad that John has decided to leave but fully understand his decision to develop his career elsewhere as UKFI moves into a new phase of its development,” said Robin Budenberg, who replaced Kingman.

UKFI gave no further reason for his exit.

He joined UKFI in December 2008 and has had overall responsibility for its engagement with RBS and Lloyds Banking Group during its first year. He previously worked for Morgan Stanley for 20 years and Merrill Lynch for two years, responsible for equity new issue business.

Lloyds Bank in $217 million settlement with U.S.

WASHINGTON, Dec 22 (Reuters) – Britain’s Lloyds TSB Bank Plc reached a $217 million settlement of charges it violated U.S. sanctions regulations, the Treasury Department said on Tuesday.

The department’s Office of Foreign Assets Control said the settlement concerned the bank’s manipulation and deletion of information about U.S. sanctioned parties in wire transfer instructions routed through third-party banks in the United States.

The settlement follows charges Lloyds faked records so clients from restricted countries, including Iran, could do business with it.

EU approves Lloyds restructuring plan

A pedestrian passes the head office of the Lloyds Banking Group in central London August 5, 2009.   REUTERS/Stefan Wermuth (BRITAIN BUSINESS) BRUSSELS, Nov 18 (Reuters) – Plans by British lender Lloyds Banking Group Plc to sell parts of its operations in return for billions of pounds in state aid were approved by European Union competition authorities on Wednesday.

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EU clears revamp plans for Lloyds, ING, KBC

LLOYDS/   BRUSSELS, Nov 18 (Reuters) – Plans by three major European banks to sell chunks of their operations in return for state aid were approved by EU authorities on Wednesday, marking the latest regulatory-enforced financial break-ups. (more…)

Big-bank containment strategy catches on in US, EU

By Kevin Drawbaugh
WASHINGTON, Nov 3 (Reuters) – The government should be able to restrict the size of financial firms so they do not become “too big to fail,” two key U.S. Democratic lawmakers said on Tuesday, echoing proposals being made in Europe.

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US lawmaker favors curbing size of financial firms

WASHINGTON, Nov. 3 (Reuters) – The government should have the authority to break up or reconstruct financial firms before they become “too big to fail,” a prominent U.S. lawmaker said on Tuesday.

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RBS faces forced sales and 3,700 UK job cuts

A customer uses a Royal Bank of Scotland (RBS) cash machine in Edinburgh, Scotland August 7, 2009.    (BRITAIN BUSINESS BANKING)   By Clara Ferreira-Marques
LONDON, Nov 2 (Reuters) – Royal Bank of Scotland said it would be forced to sell more assets than it had expected and axe 3,700 jobs from its retail business as another radical shake-up loomed for Britain’s banks.

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Crunch week for Lloyds as regulators near verdict

By Victoria Howley and Douwe Miedema
LONDON, Oct 23 (Reuters) – Lloyds Banking Group faces a crunch week over its plans to plug a 20 billion pound ($33.30 billion) hole in its capital before Christmas, with a key decision resting with UK regulators.

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Britain to weigh Lloyds plans this weekend – source

A pedestrian passes the head office of the Lloyds Banking Group in central London August 5, 2009. REUTERS/Stefan Wermuth (BRITAIN BUSINESS) By Douwe Miedema
LONDON, Oct 16 (Reuters) – Britain’s financial watchdogs will this weekend make up their minds about Lloyds Banking Group’s plans to raise private capital and escape further government control, a source close to the situation said.
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NEWSMAKER-EU state aid experts mix pragmatism, tough talk

By Foo Yun Chee

BRUSSELS, Oct 16 (Reuters) – Neelie Kroes, the European Union antitrust czar, has picked two high-fliers with a wealth of financial and state aid experience to help restructure Europe’s banking landscape in the wake of the credit crisis.

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