RBS finance chief to leave at end of September

Losses on RBS mortgage-backed securities add up to $49bn so far the US says
Losses on RBS mortgage-backed securities add up to $49bn so far the US says

Royal Bank of Scotland (RBS) has announced that chief financial officer Ewen Stevenson will step down at the end of September.

The state-owned bank first informed investors of Mr Stevenson’s exit in May, hours before its AGM.

The bank has appointed Katie Murray, its deputy chief financial officer, until a new appointment is made.

RBS said Mr Stevenson will remain on the board until September 30 and will be on gardening leave until his employment ends on November 30.

His long-term share awards will also terminate on his exit.

Mr Stevenson will be paid until November 30 and will not receive a remuneration payment related to his leaving.

The news comes after the US Department of Justice published damning documents detailing the attitudes of RBS bankers before the financial crisis.

They showed RBS bankers admitted in robust language that they were selling “total ... garbage” to investors.

The US authorities also revealed that employees made light of destroying the housing market in the lead-up to the financial crash.

The head trader got an email from a friend that said: “[I’m] sure your parents never imagine[d] they’d raise a son who [would] destroy the housing market in the richest nation on the planet.”

The trader answered: “I take exception to the word ‘destroy.’ I am more comfortable with ‘severely damage.’”

The DoJ estimates RBS underwrote and issued mortgage-backed securities so far resulting in losses worth more than $49 billion (£38bn), and warns another $5.6bn (£4.4bn) will be lost.

While RBS has agreed to pay a $4.9bn (£3.8bn) fine to the DoJ, it disputes and has not admitted the allegations put forward by American authorities.