Royal Bank of Scotland to Clear Out Directors
The Royal Bank of Scotland is getting ready to clear out their boardroom, purging the business of directors that are linked with Sir Fred Goodwin, the bank’s former Chief Executive. The change comes while the bank is getting ready to put between £50 billion and £100 billion in loans into the new bank insurance scheme of the government.
Peter Sutherland, the Chairman of BP, as well as Jim Currie and Sir Steve Robson, former civil servants, are all said to be stepping down. The Senior Independent Director, Bob Scott, along with Colin Buchan, a board member since 2002, are expected to step down as well. However, they may postpone their leave until replacements are found. There will be a final decision made on when Sir Philip Hampton is to become Chairman, and the Royal Bank of Scotland has already earmarked 3 non-executives to fill the roles.
The government, who owns a 70% stake in the company, has been clear that they want to see the head of the bank change. Stephen Hester, the replacement for Goodwin, has identified that senior staff that will need to leave, along with those who are to be promoted. This move is also coming while Hester is putting the finishing touches on a radical restructuring. Up to 30,000 out of 170,000 jobs are at risk over the next 3 to 5 years, as he cuts back the network of the bank. Ten thousand jobs have already been cut.
The Royal Bank of Scotland, who has over £2 trillion in assets, is now a guinea pig for the loss insurance rescue scheme from the government. An agreement is to be figured out during the next 4 weeks in order for Treasury officials to open negotiations with Barclays and Lloyds Banking Group (Lloyds TSB renamed) for joining the scheme as well.
Learn more about the bank at: www.rbs.co.uk