UKFI loses boss Cooksey at key moment

UKFI, the Government body in charge of the taxpayers' stake in the bailed-out banks, today suffered a shock departure as Sir David Cooksey said he was leaving as chairman with immediate effect.

"Now is the right time for me to hand over," said Cooksey, despite the fact this is a crucial time with Lloyds and Royal Bank of Scotland about to finalise annual bonuses and RBS making job cuts.

UKFI chief executive Robin Budenberg will become chairman. UKFI defended the promotion, which goes against corporate governance guidelines, claiming it was "in the best interests of UKFI and its stakeholders".