UK banks are making dramatic changes following a government investment of £37 billion, devised to improve their funding.
Executives at Royal Bank of Scotland (RBS) and HBOS are to be replaced by new talent and the bank’s boards will soon feature government executives, it has been reported.
RBS chief executive Sir Fred Goodwin is to be replaced by Stephen Hester, currently chief executive of British Land, and HBOS chairman Lord Stevenson is also set to go.
By taking a share in the banks, the Treasury has in effect given part-ownership to UK taxpayers.
The chancellor Alistair Darling told BBC Radio 4: “There is every reason to be confident that, as we go through this, the British taxpayer will get his money back.”
HBOS’ chief executive Andy Hornby is also set to leave his companies’ offices in London.
Lloyds TSB previously offered Mr Hornby a role on a combined board, which would sit following the banks planned takeover of HBOS.
It currently occupies commercial property in Gresham Street, London and has more than 2,000 branches around the UK.
Both Mr Hornby and Sir Fred Goodwin will leave without their bonus payments, which were each to exceed £1 million.