SENIOR financial figures are working on plans to snap up state-owned banking assets such as Northern Rock to create a new player on the high street.
Lord Levene, chairman of the Lloyd’s of London insurance market, and Sir David Walker, who headed a review into bank boardroom practices, are backing the launch of a new venture that would look to bid for taxpayer-backed assets.
They are planning to list an acquisition vehicle on the stock market and have already got investment banks and advisers on board, sources close to the venture confirmed.
UK Financial Investments, which oversees Government-owned banking assets, and the City regulator have already been briefed on the proposals, with details expected to be announced within days.
The new venture will set its sights on retail banking assets only, including nationalised Northern Rock, which the Government wants to sell back to the private sector.
It is also understood to be looking at parts of Lloyds Banking Group and Royal Bank of Scotland, which are being put up for sale in return for state bail-out money received during the financial crisis.
The project aims to create a new banking player to rival the established groups.
Institutional investors including Aviva, Invesco and F&C Asset Management, are said to have pledged billions of pounds to the deal in principle.
Lord Levene, whose minimum three-year term at Lloyd’s ends later this year, is lined up as chairman of the banking proposition. He has a highly-regarded career behind him in the private and public sector, including a stint as Lord Mayor of London and as a former adviser to the Chancellor.
Sir David, an ex-Bank of England director and former chairman of the then Lloyds Bank, is expected to become a non-executive director. He was recently called upon by the Government to come up with a new code of best practice for the City.
