Royal Bank of Scotland set to clear-out directors in radical restructure
Radical restructure
ROYAL Bank of Scotland today looked poised for a clear-out of directors associated with the reign of former chief executive Sir Fred Goodwin.
The Sunday Times said BP chairman Peter Sutherland and former civil servants Sir Steve Robson and Jim Currie were preparing to step down. Senior independent director Bob Scott and Colin Buchan, a board member since 2002, could also go, although they may delay their exit until replacements are found.
The company, which last week warned of losses of up to £28 billion for 2008, has already drawn up a list of names from which it will pick three non-executive directors. It recently appointed Sir Philip Hampton as deputy chairman with a view to taking over from chairman Sir Tom McKillop in April.
Stephen Hester, who took over from Sir Fred last year, is currently putting the finishing touches to a radical restructuring which could see as many as 30,000 jobs - out of 170,000 - lost in the next three to five years.
He intends to take risk out of the bank's balance sheet, sell non-core operations and shut down businesses that sold products that almost broke the bank.
Today's report also said RBS was preparing to place £50 billion to £100 billion of loans into the government's new bank-insurance scheme.
RBS, which is set to be 70% owned by the taxpayer, is being used by Treasury officials as the scheme's guinea pig before negotiations take place with Lloyds Banking Group and Barclays.
Final terms are yet to be decided, but the government is likely to insist RBS takes the first 10% of any further losses.
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