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| New chairman to take over at RBS | New chairman to take over at RBS |
| (10 minutes later) | |
| Sir Philip Hampton, the chairman of Sainsbury, is to take over at the Royal Bank of Scotland, the BBC has learnt. | Sir Philip Hampton, the chairman of Sainsbury, is to take over at the Royal Bank of Scotland, the BBC has learnt. |
| Sir Philip has agreed to take the post of chairman - after RBS's problems led to the resignations of the bank's senior management. | Sir Philip has agreed to take the post of chairman - after RBS's problems led to the resignations of the bank's senior management. |
| He replaces Sir Tom McKillop as head of the partly nationalised bank. | He replaces Sir Tom McKillop as head of the partly nationalised bank. |
| Ministers are currently working to put in place measures to improve funding for the banks, and to limit losses from the bad loans they have made. | Ministers are currently working to put in place measures to improve funding for the banks, and to limit losses from the bad loans they have made. |
| Sub-prime exposure | |
| Last year, as the financial crisis hit banks' worldwide, the UK government took a near-60% stake in RBS amid fears about its solvency. | |
| RBS was hit by exposure to the sub-prime market in the US and was also widely thought to have overpaid for the Dutch bank ABN Amro. | |
| An RBS-led consortium paid 71bn euros ($91bn; £61bn) for ABN Amro in October 2007. | |
| In November shareholders voted by 99% in favour of accepting the £20bn ($29.9bn) government bail-out. | |
| At the meeting, the bank's then-chairman, Sir Tom McKillop, said he was "profoundly sorry" for the bank's financial difficulties. | |
| Chief executive Sir Fred Goodwin also announced his resignation at the meeting, and was replaced by Stephen Hester. | |
| Meanwhile, UK banking shares tumbled on Friday as fears that more financial institutions would look for government cash caused fresh turbulence in the sector. | |
| Barclays shares were down more than 24% at one point, while Royal Bank of Scotland saw declines of more than 16%. |