Former Tory treasurer Lord Lupton to join Lloyds board
The life peer will chair the non-fing-fenced division of Lloyds as the Government completes its exit from the bailed-out lender.
A Conservative peer and leading City dealmaker has been appointed to the board of Lloyds Banking Group – as the Government prepares to sell the last chunk of its stake in the bailed-out lender.
Lloyds also confirmed that Lord Lupton is to become the first chairman of its non-ring-fenced bank, a division of the group being set up as part of reforms put in place after the financial crisis.
The appointment of the life peer, a former treasurer of the Conservative party, was first reported by Sky News.
Lloyds said Lord Lupton would join its main board as a non-executive director on 1 June and would be chairman-designate of the non-fing-fenced bank.
He will step down from his role as chairman of the investment bank Greenhill to instead become a part-time senior adviser to the company.
The appointment comes as Lloyds Banking Group, which owns Halifax and Bank of Scotland as well as Lloyds Bank prepares for the ring-fencing regime due to come into force in 2019.
Lord Lupton, a long-standing Conservative donor, is among the most prominent names in the City, having held roles at Barings before co-founding Greenhill's London operations in 1998.
He will be the second Tory peer on the bank's main board, alongside Lord Blackwell, the pro-Brexit chairman of Lloyds.
The announcement comes just days before the Treasury is expected to hail the full disposal of a taxpayer shareholding in the bank which once stood at 43% of its shares.
Philip Hammond, the Chancellor, said last month that the Government had finally broken even on its stake in Lloyds, recouping more than £20.3bn in share sales and dividends.
Its stake is now down to 0.89%, the company said last week – and the sale of the final remaining shares is likely to take place in the next fortnight, marking a milestone for the UK's post-crisis banking sector.
The non-ring-fenced operations that Lord Lupton will oversee at Lloyds represent a much smaller fraction of its overall balance sheet than those of rivals Barclays, HSBC, Royal Bank of Scotland and Santander UK.
Ring-fencing – a concept devised by Sir John Vickers' Independent Commission on Banking in 2011 – is designed to shield taxpayers and ordinary depositors in the event of a future crisis by creating a clearer separation between groups' retail and wholesale operations.
Last November, Lloyds appointed Mark Grant as the chief executive of its non-ring-fenced bank, which will house some of the derivatives trading and non-UK activities conducted by Lloyds on behalf of clients.
Lloyds' high street banking operations – the vast majority of its business – will sit within its ring-fenced bank.