Mystery as senior figure decides to quit UKFI

ONE of the senior figures given the job of selling the British government's stakes in Royal Bank of Scotland and Lloyds Banking Group resigned without explanation yesterday.

UK Financial Investments (UKFI), the body that controls the taxpayers' interests in the two part-nationalised banks and nationalised Northern Rock, said John Crompton had quit as head of market investments.

It gave no reason for his exit, but the 150,000-a-year job was said to carry a fraction of his previous salary as an investment banker and there was speculation last night that he was considering a lucrative offer to return to the private sector.

"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," chief executive Robin Budenberg said.

Crompton could not be contacted for comment.

He joined UKFI in December 2008 and had had overall responsibility for its engagement with Lloyds and RBS during its first year.

He previously worked for Morgan Stanley for 20 years and Merrill Lynch for two years, and was responsible for equity new issue business.

UKFI said Budenberg would temporarily take on the main responsibility for market investments.

Crompton was Budenberg's main rival for the chief executive's job when John Kingman left in the autumn to join city adviser NM Rothschild.

UKFI was created in November 2008 by Chancellor Alistair Darling to manage, according to its website, "the government's investments in financial institutions at arm's length and on a commercial basis".