Alliance & Leicester appoints new chair to steer it thought lending crisis

By MoneyhighStreet Staff. Published on July 9, 2008 This post currently has no comments.

Alliance and Leicester
Leading UK bank Alliance & Leicester has named Alan Gillespie as its new chairman and the person who it hopes will help steer the lender out of the current financial crisis.

The bank revealed that Mr Gillespie will take over as chairman in September, when he steps down from his current job as chair of the Ulster Bank Group.

He will replace Roy Brown, who has held the post of acting chairman following the death of Sir Derek Higgs in April 2008. Upon the appointment, Mr Brown will return to his role as Alliance & Leicester''s deputy chairman and senior independent director.

With over 30 years experience in banking, Alliance & Leicester are hoping that Mr Gillespie can help the lender survive the current banking crisis.

Reuters has reported that the lender''s shares have "plunged in the last year as its funding costs have jumped and its earnings look set to fall amid the credit crunch and tough UK housing market".

David Bennett, the group chief executive, welcomed the appointment. He said: "Alan has a wealth of experience as a successful banker and a proven record as a successful chairman of both banking and government organisations."

Mr Gillespie himself said that he believed Alliance & Leicester is "well positioned to face the challenging times in the banking industry".

Investors also seemed to agree. The news of Mr Gillespie''s appointment sent shares in the lender soaring. As of 14:15 BST, shares in lender were up 10.94 per cent at 238.250.