ROYAL Bank of Scotland (RBS) is reported to have lined up former City regulator Sir Howard Davies as its new chairman.
The bank, which is about 80 per cent owned by the tax payer, could announce Sir Howard as the replacement for Sir Philip Hampton this week, according to reports.
Sir Howard, who chaired the UK Financial Services Authority from 1997 to 2003, is expected to take up the role in the summer.
Director of the London School of Economics and Political Science from 2003 to 2011, Sir Howard is currently chairman of the Government's Airports Commission, which has been examining how to increase the UK's international aviation capacity.
Sir Philip, who will become chairman of GlaxoSmithKline in the summer, joined RBS in early 2009, shortly in the wake of its bailout by the UK government following the financial crash.
According to the bank's latest annual report, Sir Philip, a former chairman of J Sainsbury and UK Financial Investments, took home board and committee fees of £750,000 in 2013.
RBS is due to report its latest annual results on Thursday, when reports suggest a write down of around £4 billion on the value of its US bank citizens will wipe out the bulk of its annual profits.
There has also been speculation that chief executive Ross McEwan will be handed a £1 million allowance under a scheme designed to circumvent new limits on bankers' bonuses.
Previous chief executive Stephen Hester had been forced to give up the payment.
The bonus pool for the year is expected to total around £500m.
A spokesman for RBS the bank had no comment to make on the speculation linking Sir Howard with the chairman's job.
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