JC FLOWERS TARGETS UK BANK ASSETS

The investment firm, which tried to buy Northern Rock before it was nationalised in 2008, aims to seize upon opportunities in Europe and Asia, with a focus on the UK, as it announced two senior appointments to its London office.

They are former City watchdog chairman Sir Callum McCarthy, who becomes European chairman, and Dr David Morgan, who will join as managing director of JCF Europe and Asia Pacific.

Morgan said he was delighted to be joining at a time when the financial services sector was being reshaped globally.

“An early focus will be on the UK, where the banking sector is undergoing a major restructuring,” he added.

Brussels is forcing Northern Rock, Lloyds and RBS to sell assets, including branches, current accounts and mortgages, in return for the Government support they have received.

The Government hopes the result will see three new banks created over the next four years. Other possible buyers include Virgin Money and Spanish bank BBVA.

Flowers could partner with another institution to avoid suspicion of trying to turn a quick buck.