Monday, 2 February 2009

More on UKFI

The Grauniad has a few details about UKFI, the Treasury's asset management arm.
This week the government is also expected to publish the formal terms of engagement for UKFI, which is intended to operate at arm's length from the Treasury.

UKFI is expected to make it clear that it will exercise its votes at annual general meetings and wants to ensure that big City institutions - whose power has been reduced by the taxpayers' involvement - also continue to try to influence debate by casting their votes too.

The body is also thought to have conducted an audit on how the bailed-out banks are performing in relation to the government's demand that they continue to lend to housebuyers and small businesses at 2007 levels. That progress report may also be published shortly.

Presumably UKFI will also make public how it votes, though inevitably it's going to be pro-management.

The appointments to the Lloyds board, also in the Grauniad piece, are also interesting. One of them is former Hermes chief Tony Watson, who has said a lot of very sensible stuff over the years.

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