U.K.’s Bank Resolution Firm Replaces CEO as It Nears Wind Down

  • Richard Banks to join Computershare unit as CEO in outsourcing
  • Finance Director to replace Banks as chairman Pym steps down

UK Asset Resolution Ltd., which owns Britain’s fully nationalized banks, said Chief Executive Officer Richard Banks will leave the firm as it comes closer to winding down the company six years after its formation.

Banks, 64, will join Computershare Mortgage Services Ltd. as CEO when around 1,700 UKAR employees join the company as part of an outsourcing arrangement agreed earlier this month, the Bingley, England-based company said in a statement on Tuesday. Ian Hares, UKAR’s finance and investment director, will become CEO. Chairman Richard Pym will also step down in June and will be replaced by existing non-executive board member John Tattersall.

UKAR was formed out of collapsed lenders Bradford & Bingley Plc and Northern Rock Plc after they required a bailout during the first run on a British bank in more than a century. UKAR has now repaid about 20.4 billion pounds ($30 billion) to the U.K. government, almost half of the amount it received in loans from taxpayers, it said in the statement.

“Our objective of repaying the government loans in full remains,” Tattersall said in the statement. “We have stability of leadership, expertise in optimising the balance sheet and a continued focus on customers. UKAR will achieve its mission of maximising value to the taxpayer whilst treating all stakeholders fairly.”

UKAR signed a contract with Computershare to outsource the servicing of 30 billion pounds of customer loans.

UKAR cut its balance sheet by 22.8 billion pounds in the year through March 31, leaving it with 43.3 billion pounds, according to the statement. The firm agreed to sell a 13 billion-pound portfolio of Northern Rock mortgage assets to U.S. private-equity firm Cerberus Capital Management LP in November and is planning to dispose of at least 15.65 billion pounds of Bradford & Bingley loans within the next two years.

Before it's here, it's on the Bloomberg Terminal.