Nick Clegg has defended job losses at RBS. The Deputy Prime Minister said the bank needed to shrink to a "sustainable" size.
On his LBC 97.3 phone-in show, he said: "RBS is going through a massive, massive change in which Stephen Hester has obviously played a significant part in this first episode.
"It wouldn't be in existence if it wasn't for the generosity of taxpayers ... but it needs to downsize, it can't carry on being this huge, big, hulking, what they call universal, bank.
"It's got to shrink down to a size where it has got a sustainable, stand-alone future. That's what all of these painful reforms are all about.
"Unfortunately it does mean that people who, for instance, have been working in the investment arm of NatWest, which I would argue is not the absolute central purpose of a taxpayer-funded bank, that's being shrunk down to size."
ITN's Deputy Political Editor Chris Ship explains why Stephen Hester's time ran out at RBS.
The man in charge of steering RBS back into private hands - retrieving £45bn of taxpayers cash in the process - is to leave the bank.
RBS chief executive Stephen Hester has announced he is to leave the taxpayer owned bank. But was he forced out or did he jump.