Cooksey set to be chairman of UKFI

Sir David Cooksey is to become chairman of UKFI

Sir David Cooksey is to become chairman of the company set up to manage the taxpayer's stake in struggling banks, the Treasury has said.

The London & Continental Railways chairman and former venture capital pioneer will take up his role at the helm of UK Financial Investments (UKFI) on August 1.

He will replace Glen Moreno, who has been acting chairman since UKFI was established last year.

UKFI owns 70% of Royal Bank of Scotland and 43% of Lloyds Banking Group.

Sir David said: "The taxpayer has made a substantial investment in the banks in order to preserve financial stability, and I will be focused on protecting the value of those investments and disposing of them over time."

He formed one of the UK's first venture capital partners, Advent, in 1981 and remained chairman of the business until 2006.

The company has backed more than 200 businesses, concentrating on life sciences and technology sectors.

Sir David, who was knighted in 1993, has also served in public roles including as a Bank of England director.

He will be paid £100,000 a year for the UKFI role, with no bonus or pension entitlement.

As well as the stakes in RBS and Lloyds, UKFI has now taken on formal responsibility for the Government's investments in Bradford & Bingley, which was broken up and part-nationalised in September last year.