Shares in RBS ended the day having recovered a little bit, but still down four percent.
The City hates any interference in its affairs by the government.
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.