Deal Journal today cites a story in the UK’s Independent Sir Philip Hampton the current chair of the J Sainsbury Supermarket chain is likely to be selected as the Royal bank of Scotland’s (RBS) new chairman. RBS remains one of the UK’s biggest Banks suffering under the credit crisis. RBS’s recent CEO change was examined in a previous blog. RBS is now basically controlled by the UK government. According to the Independent,
If Sir Philip does accept the role, he will be taking on one of the toughest jobs in the international banking sector, as the Government-controlled RBS tries to navigate its way through a vast pile of toxic loans.
RBS has been among the biggest British banking casualties of the global financial crisis. It raised £12bn from its shareholders in the first half of last year, before accepting a further £20bn of taxpayers’ money last autumn in an attempt to stave off collapse. There are concerns in the City that a significant further deterioration in the quality of its assets could lead to the bank being wholly nationalised.
Management change seems to be following a similar pattern in the banking industry as circumstances continue to deteriorate more and more board are reluctantly looking for changes at the top. There remains a need for more and more changes in the boards as well. Keep a close eye on what actually transpires at RBS over the next week or two.
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