Yahoo News Bank watchdog veteran Thorburn to join Barclays UK board
A director of the Bank of England's prudential oversight board is quitting to take a key role at Barclays (LSE: BARC.L - news) as it prepares for the biggest reforms to banking regulation for decades.
Sky News has learnt that David Thorburn, a former boss of the Clydesdale and Yorkshire banks, is to chair the risk committee of Barclays UK.
His appointment is expected to be announced on Friday, according to insiders.
The Bank of England announced Mr Thorburn's decision to step down earlier this week "to return to the private sector", but did not disclose his destination.
As an independent member of the Prudential Regulation Committee, he had responsibility for many of the rules to which Barclays was subject.
His recruitment by Barclays will complete the board line-up of its ring-fenced unit, the new division that will house the lender's retail banking activities and some of the products and services it provides to smaller business customers.
Last week, Barclays became the first UK bank to gain High Court approval for its restructuring - a necessary step that will need to be repeated by rivals including HSBC, Lloyds Banking Group and Royal Bank of Scotland (LSE: RBS.L - news) .
That approval was granted after objections that the new structure could adversely affect pension scheme members were overruled.
Barclays is now focused on implementing the technical switchover that will establish its ring-fenced bank as a standalone entity, which is due to take place over the Easter weekend.
The structural segregation of retail and investment banking activities was the principal recommendation of Sir John Vickers' Independent Commission on Banking - set up by the then Chancellor, George Osborne - in 2011.
It was conceived in response to the banking crisis which began in 2007 with the run on Northern Rock, with the objective of shielding taxpayers from the consequences of a future crash.
While the blueprint drawn up by Sir John is now irreversible, ring-fencing has drawn as much criticism as support in the nearly-seven years since the Government endorsed it.
Those opposed to it have argued that it will fail to address many of the challenges thrown up by the last financial crisis, or the unknown causes of a future one.
Mr Thorburn is a widely respected figure in the banking industry, although it is unclear whether he will be required to delay his arrival on the board of Barclays UK given that his departure from the PRC was announced just a few days ago.
He is also an independent board member of the 'big four' audit firm EY.
Barclays UK is chaired by Sir Ian Cheshire, the chairman of department store retailer Debenhams (Frankfurt: D2T.F - news) .
Among the non-executive directors he has recruited is Sir John Timpson, founder of the eponymous high street chain, and the former Yorkshire Building Society boss Chris Pilling.
The Barclays UK unit will operate independently of, but alongside, Barclays International, which will house the group's vast investment banking balance sheet.
Barclays declined to comment on Thursday evening.
