RBS announces boardroom clear-out

The UK government now owns 70% of RBS

Royal Bank of Scotland says seven non-executive directors have retired with immediate effect from the bank's board.

The departures come before the appointment of three new non-executives as part of conditions attached to the bank's �20bn government bail-out.

New chairman Sir Philip Hampton said that "now was the right time to reduce the size of the board".

Analysts said the clear-out could allow the government greater control of the bank, which is 70% owned by taxpayers.

The smaller number of directors would be "better able to engage effectively in the restructuring process for RBS group", the bank said.

Decisions don't come any more fraught than whether RBS should pay bonuses Robert Peston, BBC business editor Read Robert's blog

Bob Scott, Jim Currie, Bill Friedrich, Bud Koch, Janis Kong, Steve Robson and Peter Sutherland leave RBS on Friday.

Only five board members remain from the bank's former management team under Sir Fred Goodwin, who was ousted in October following the government bail-out.

Sir Fred was replaced by Stephen Hester, while Sir Philip took over from Sir Tom McKillop.

The new board's first challenge is likely to come over bonus payments.

RBS has come under fire following reports it is considering awarding large bonuses, despite expectations of huge annual losses.

Prime Minister Gordon Brown has insisted there should be "no reward for failure" at banks which have had to be bailed out by the taxpayer.

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