RBS BOSS IS FIRST LOCAL CASUALTY OF GLOBAL CASH CRISIS

 In a week marked by violent demonstrations in the City, directed at the G20 leaders who met in London to seek a solution to the global financial crisis, two heavyweight shocks have rocked Gibraltar's financial services sector - a disclosure that one local legal firm has been badly damaged ("decimated", VOX was told) by Madoff's $50 billion fraud, and the news that Kerry Blight, regional director of RBS and NatWest banks was to leave his post.

Unlike the financial mess that has humbled the Scottish-based bank and forced its virtual takeover by the British taxpayer in a multi-billion bail out programme, Blight's departure has been kept secret - even from Marcus Killick, Chief Executive Officer of the Financial Services Commission, the body charged with regulating the Rock's banking system.

Equally secretive have been the bank's plans not to replace Blight - presumably part of the wide restructuring called for by UK Premier Gordon Brown and His Chancellor of the Exchequer Alistair Darling as part of the  rescue package. Blight is only one of 20,000 of the bank's employees who are to lose their jobs, and some of his junior colleagues in both RBS and its NatWest subsidiary are set to join him in the "golden handshake" stakes.

Local bankers who know about Blight's departure believe that the decision not to replace his position could lead to regulatory problems. However, Killick would not comment on this aspect until he knew more - and officially - about Blight's departure.

During his lengthy spell as local director of RBS Blight not only developed the strong alliance between the local bank and Banco Santander in the Spanish mortgage market, but also oversaw the complex union with NatWest after the latter was taken over and some services were shared. Blight won out over the local NatWest head Pete Yeoman - whom many in financial circles considered to be better suited to the task.

Blight, however, had strong allies in the Caruana government, and was the driving force in the £10-million loan and lease-back deal which brought about the new St Bernard's Hospital.

* Ironically, news of Blight's departure leaked at the same time that VOX learnt of the promotion of Franco Cassar the local Barclays director who now includes the supervision of the bank's activities in Cyprus and of its representative offices on Malta. Cassar is also the honorary consul for Malta.