O'Neil fronts up bank sale for Treasury

INVESTMENT banker Jim O'Neil has been appointed to head up the sale of the UK government's stakes in Royal Bank of Scotland and Lloyds.

The veteran Merrill Lynch executive will join UK Financial Investments (UKFI), which manages taxpayer-owned shareholdings acquired during the financial crisis, as head of market investments.

The government has not set a timetable for selling its 41 per cent stake in Lloyds and 83 per cent stake in RBS.

O'Neil said: "Disposing of these stakes in an orderly manner will be among the most important events in the capital markets over the coming years.

"It is my intention to use all of my experience to protect and create value for the taxpayer from these investments."

O'Neil, 43, led the Bank of America/Merrill Lynch team which advised Lloyds on its mammoth rights issue last year - a deal that helped the bank avoid handing over an even bigger stake to the government.

He will be paid a salary of 180,000 at UKFI, where he replaces John Crompton, another ex-Merrill Lynch banker, who resigned earlier this year.

l Hamish Leslie Melville has been appointed chairman of RBS's investment banking committee which oversees large or complex transactions. He has worked in financial services for 35 years and joins from Credit Suisse's European investment banking committee. He will report to Marco Mazzucchelli, RBS' global head of banking.