Early departure for RBS chief
The chairman of part-nationalised Royal Bank of Scotland stepped down two months early today.
Sir Tom McKillop - originally due to retire in April - brought forward his departure to allow successor Sir Philip Hampton to complete an overhaul of the troubled bank's board.
RBS is set to be 70 per cent owned by taxpayers after a year of financial turmoil which could leave it as much as £28bn in the red, due to bad debts and write-downs on the value of past acquisitions.
Sir Philip, chairman of supermarket Sainsbury's, said Sir Tom had led RBS with "great dedication and integrity" through unprecedented financial turbulence.
But Sir Tom - who was paid £750,000 as chairman of RBS in 2007 - is likely to face probing questions from MPs on the Treasury Select Committee next week over the board's supervision of the crippled business.
RBS led a consortium which bought Dutch bank ABN Amro in 2007 at the very peak of the market, while its investment banking business was heavily exposed to the complex financial instruments hit by the credit crunch.
Sir Fred Goodwin - who led RBS on its acquisition spree before resigning in the wake of the first bank bail-out last October - will also answer to MPs next week. He has been replaced by former British Land chief Stephen Hester.
The Government stepped up its share of RBS in January after converting £5bn in preference shares to ordinary shares, giving it a £20bn stake in the bank.
Sir Tom said: "I wish Sir Philip and the board every success in this difficult financial and economic environment as they strive to restore the bank's prosperity."
Sir Philip added: "We are extremely fortunate to have the support of the UK Government and taxpayer as we restructure the group and we mean to repay that support as soon as is practicable".
- 1 Labour rallies behind Flint as deputy leader to offset a Corbyn win
- 2 The difference between a psychopath and a sociopath
- 3 It won’t work, Jeremy: The Health Secretary has lost the confidence of the medical profession in his attempt to reform the NHS
- 4 Dutch King Willem-Alexander declares the end of the welfare state
- 5 'Cool kids' can go on to become losers in later life, study finds
Labour rallies behind Flint as deputy leader to offset a Corbyn win
Kim Jong-un is awarded global statesmanship prize by Indonesia
Dutch King Willem-Alexander declares the end of the welfare state
RuPaul interview: The drag star on being inspired by Bowie, never fitting in, and saying the first thing that comes into your head
Calais crisis: Migrants that have made it to the UK reveal how Britain has matched their expectations
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Labour leadership: New poll shows party is now even 'less electable' than under Ed Miliband
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Calais crisis: The seven claims made about the migrants - and the reality
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: This is an exciting opportunity...
£13000 - £15000 per annum: Recruitment Genius: Are you passionate about custom...
£22000 - £25000 per annum: Recruitment Genius: Main purpose: Under the directi...
£35000 - £37000 per annum + benefits : Ashdown Group: Contracts Manager - City...