Government backs off RBS, Lloyds TSB and HBOS after bailout

The UK banks who agreed to the £37 billion rescue from the government, Royal Bank of Scotland (RBS), Lloyds TSB (LLOY), and HBOS will not see government officials sitting in their board rooms instead the government will be conducting business at arm’s length whilst they managed the taxpayers share of equity in the giant banks.

However it’s been indicated that RBS, HBOS and Lloyds TBS will soon see government appointed board directors in board room meetings, but it’s not clear who the government will be appointing to take the various positions, although they have said that they will be employed by UKFI the government company that was formed to deal with the bailout, and that the high grade financially skilled people they will employ for the role will report to the bank and not directly to the government.

Banks bosses have said that the government’s role is to “manage the taxpayer’s investments” not run the banks.

Source: ukpress.google