Rollercoaster week for RBS shareholders as Stephen Hester's departure sends shares plummeting

By ROB DAVIES FOR THE DAILY MAIL

Updated: 17:13 EST, 14 June 2013

A rough week for Royal Bank of Scotland went from bad to worse, as its shares slipped following the ousting of boss Stephen Hester, a broker downgrade and a new rate-rigging scandal.

The bank’s stock ended the week 4 per cent down due to the flurry of news, which rocked investor confidence.

The latest blow came with the revelation that RBS was one of 20 banks censured in Singapore after traders in the Asian financial hub were found to have tried to manipulate interest rate benchmarks.

Ousted: Stephen Hester was removed after a series of run-ins with Chancellor George Osborne

Just 24 hours earlier, Deutsche Bank analysts had advised clients to sell their stock in the 82 per cent taxpayer-owned bank, slapping the lender with a target price of 275p.

RBS shares were down for most of yesterday before rallying in the final hours of trading. They closed 1p up at 316p, but still nearly 4 per cent down on the week.

The fall was largely due to the shock departure of boss Stephen Hester, after a series of run-ins with Chancellor George Osborne.

The news surprised the City and was swiftly followed up with the announcement that the bank will cut some 2000 jobs over the next 18 months.

One RBS banker told the Mail that Hester’s departure had left staff stunned and unsure of where the company will go from here.

‘People inside the bank were surprised and disappointed,’ he said. ‘Will we be able to go on and rebuild the brand and rebuild value for the taxpayer? Or will someone new tell us how to go about doing it?’

RBS has begun the hunt for a new boss, employing top headhunter Anna Mann to find a successor for Hester.