Stephen Hester to quit RBS

Marion Dakers

STEPHEN Hester is to step down as boss of Royal Bank of Scotland, the government-backed bank announced today.

Chairman Philip Hampton will start the search for a new chief executive immediately after Hester “was unable to make [an] open-ended commitment” to see the firm through to privatisation.

Hester, who has been in charge at RBS since November 2008, will stay until December, unless his successor is in post before then.

The bank and chancellor George Osborne hailed Hester today for getting the bank in shape ahead of its exit from state ownership.

See Thursday's City A.M. for more on Hester's departure