RBS share price down on “unsatisfactory” chief executive exit

<p>Stephen Hester’s departure has led to RBS stocks crashing.</p>

The share price of the Royal Bank of Scotland (RBS) is down today (June 13th) on the back of the news its chief executive is set to step down.

Stephen Hester confirmed last night he is leaving the organisation and the timing of his leaving and the manner in which it is being handled has been described as "deeply unsatisfactory" by Investec's Ian Gordon.

He said: "Despite persistent speculation over whether Stephen would resign, it was not his decision to leave."

Many analysts have claimed there has been pressure on RBS by chancellor George Osborne for Mr Hester to leave the bank before it is reprivatised.

RBS is currently 81 per cent owned by the taxpayer after it was bailed out during the recession.

Shore Capital's Gary Greenwood labelled the departure of Mr Hester as a "mistake" and suggested RBS might find it hard to discover a replacement for the outgoing chief executive.

Although the share price of RBS was down by more than seven per cent at one point this morning, stocks were trading at 312.50 at 16:10 BST, down four per cent for the day.

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