RBS and HBOS bosses quit

The top executives at two of the UK’s biggest banks are to go following the announcement of a £37 billion government rescue package.

Royal Bank of Scotland’s chief executive Fred Goodwin has stepped down, and chairman Tom McKillop will retire in April 2009. Meanwhile, Andy Hornby and Dennis Stevenson, HBOS’ chief executive and chairman, will leave the bank upon completion of its acquisition by Lloyds TSB.

After a short handover period Goodwin will be replaced by Stephen Hester, chief executive of London-based property company British Land. Successors to McKillop, Hornby and Stevenson have not been named.

Prior to his position with British Land, Hester was chief operating officer with Abbey National until 2004.

The resignations came as the UK government revealed this morning that it will inject a total of £37 billion into Royal Bank of Scotland, HBOS and Lloyds TSB, as part of a recapitalisation plan revealed last week.

See also: RBS, HBOS and Lloyds TSB ask for government capital