The directors of Royal Bank of Scotland rebuffed demands from its biggest investors for its chairman and chief executive to quit after an emergency £12bn fund raising last year, the head of Britain’s biggest investment group told MPs yesterday.

Peter Chambers, chief executive of Legal & General Investment Management, criticised the bank’s board under questioning by the Commons Treasury select committee investigating the banking crisis.

Defending shareholders against accusations they had been supine ahead of the crisis, Mr Chambers said LGIM, one of the top three investors in RBS, had demanded in May that Sir Tom McKillop and Sir Fred Goodwin, chairman and chief executive, should leave.

Financial Times