Pressure mounts on RBS boss to name his date of departure

ROYAL Bank of Scotland chief executive Sir Fred Goodwin was today facing mounting pressure to name the date he will stand down.

One major investor said that neither Sir Fred or the bank's chairman, Sir Tom McKillop, are likely to be at the helm "much longer than a year".

And the pressure on the pair is likely to intensify after Sir Tom admitted that purchasing ABN Amro at a time when bank valuations were higher could be called "misjudgement".

The comments come as the board of the Edinburgh-based bank were today set to come face to face with shareholders at its annual general meeting.

The Edinburgh International Conference Centre was braced for a fiery event, with several hundred shareholders expected to attend.

There has been unrest at RBS' decision yesterday to push ahead with a £12 billion rights issue, which is seen as proof that its actions have caused problems for its balance sheet.

And shareholder unrest is likely to intensify after Sir Tom's comments on the bank's role in the £49 billion acquisition of ABN Amro. He said: "Looking back, we purchased ABN Amro at a point where bank valuations were way higher than they were today. That is unfortunate. You could call that misjudgement."

One top 10 RBS investor said: "We want a clear indication from the company about when Sir Fred will leave."

And another major investor added: "Neither chief executive nor chairman are likely to be around much longer than a year.

"The board has been very badly chaired while a strong-willed chief executive has been allowed to go unchecked."

But when asked specifically about Sir Fred's position, Sir Tom said: "There is no single individual responsible for all these events. To look for a sacrificial lamb just misses the whole point. This is an extremely strong board. There are no patsies on this board."

David Cumming, head of UK equities at Standard Life Investments, which holds a 3.5 per cent stake in RBS, said: "Sir Fred Goodwin justifies our continued support, however he has to fully engage with his shareholder base and strengthen the non-executive board to maintain its support."

RBS also said yesterday that it is looking to raise £4bn through disposals, with its insurance arm, which includes Direct Line and Churchill, under a "strategic review".

But the founder of Direct Line said today that any sale would be "sad" and "a mistake".

Peter Wood, who founded the group with the assistance of a £25m investment from then RBS boss George Mathewson, said: "It would be a mistake to sell it now. It is just the kind of counter-cyclical business (RBS needs)."

It now generates £250m of profits a year and its main lines of insurance – motor and home – are "recession-proofed", according to Mr Wood.