UKFI sacks headhunter over RBS appt

People walk out of a Royal Bank of Scotland building in London February 26, 2009. REUTERS/Stephen Hird

LONDON (Reuters) - UK Financial Investments, the body managing the government’s stakes in bailed-out banks, has fired headhunters charged with finding its new boss after they recruited a disgraced top banker from Royal Bank of Scotland.

UKFI, which manages stakes including 70 percent of Royal Bank of Scotland RBS.L, said on Wednesday it had dismissed Odgers Berndtson, one of the City's best-known recruitment firms, days after the headhunter said it had recruited Johnny Cameron, RBS's former head of investment banking, as an adviser.

Cameron, a close ally of tainted RBS boss Fred Goodwin, left RBS after it was partly nationalised last year.

“Johnny Cameron has had no involvement in the UKFI CEO search process whatsoever. UKFI and Odgers have mutually agreed that Odgers should not continue with the UKFI search,” a UKFI spokeswoman said.

Rival executive search firm Spencer Stuart will replace Odgers, appointed just weeks ago to lead the search for a chief executive after John Kingman said in July he planned to leave UKFI.

Reporting by Clara Ferreira-Marques; editing by Simon Jessop