RBS to raise £20 billion in new capital, lose CEO

RBS is to raise £20 billion in new capital. The first £15 billion will be raised through the issuance of ordinary shares.

RBS is to raise £20 billion in new capital. The first £15 billion will be raised through the issuance of ordinary shares, underwritten by the Treasury at 65.5 pence per share. Existing shareholders, as well as new institutional shareholders, will be invited to subscribe. In addition, HM Treasury will subscribe for £5 billion of preference shares.

Sir Fred Goodwin will step down as chief executive, to be replaced by Stephen Hester, currently chief executive of British Land and a non-executive director of the Group. In addition, Johnny Cameron, Chairman Global Markets, will step down from the Board with immediate effect.

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