Stephen Hester is to leave British Land to become chief executive of The Royal Bank of Scotland.

A statement this morning confirmed that Sir Fred Goodwin, chief executive at RBS, will step down.

A ‘suitable date’ for Hester’s departure from his role as CEO at British Land will be ‘agreed shortly between both companies.’

British Land said it will announce succession plans in due course.

Today RBS announced plans for a £20bn capital raising exercise.

It is offering ordinary shares to raise £15bn of core tier 1 capital.

The offer will be underwritten by HM Treasury at a fixed price of 65.5p a share.

RBS chairman Sir Tom McKillop will retire at the group's AGM in April 2009. In addition, Johnny Cameron, chairman of global markets, will step down from the board with immediate effect.

Sir Tom said: 'The steps we have announced today, taken in conjunction with the Government, will secure a stronger future for the RBS Group. We regret having to raise new capital but believe that decisive action is necessary in this unprecedented market environment.’

Stephen Hester speaking about the market at OFFICES 08