Royal Bank of Scotland (RBS) is set to announce cuts in its investment division that mean some 2,000 jobs are going to be lost.
The bank's chief executive Stephen Hester confirmed he is standing down yesterday (June 12th) ahead of the reprivatisation of RBS.
Mr Hester – who will not receive a bonus package for 2013 as a result of his departure – added he would have liked to have stayed in the role until reprivatisation was complete.
RBS is 81 per cent owned by the taxpayer after the UK government chose to bail it out to avoid it going bankrupt during the credit crunch.
Speaking on the BBC's Newsnight programme last night, ex-City minister Lord Myners stated the decision for Mr Hester to leave RBS came as bosses at the bank "are doing the bidding of George Osborne".
RBS said in a statement an "orderly succession" would allow the new chief executive to oversee the reprivatisation of the bank and lead it "in the years that follow".
The share price of RBS has taken a sharp dip this morning and as early as 08:21 BST was down by almost 7.5 per cent on the start of the day's trading.
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