Hester rides back in triumph to RBS

By Sinead Cruise

LONDON (Reuters) - It was often joked in banking circles that London's City had mapped out new Royal Bank of Scotland chief Stephen Hester's career path long before he did.

Less than two weeks after taking up a non-executive directorship at the bank (RBS.L), the British Land (BLND.L) chief executive has landed the top job, sealing one of the most widely anticipated financial sector reshuffles since the global banking crisis began.

The UK government is preparing to become RBS' top shareholder as part of a rescue of three top banks announced on Monday. Hester replaces Fred Goodwin, who resigned in the face of criticism of his acquisitive style.

The UK property industry has long-since been resigned to losing Hester, who moved from banking into the sector only four years ago.

Widely seen as a square peg in a round hole, banking and property market commentators said Hester's short stay in the industry was little more than a brief interlude to the high-profile bank role he has always coveted.

"This is certainly SH's big chance, the one he has been waiting for," said an executive from one of Europe's biggest property share investors. "I am sure he has the financial skills and market knowledge, the political nous and, probably, the theoretical management skills to do the job."

A property sector novice, he was a surprise successor to real estate doyen Sir John Ritblat, who retired from British Land, the UK's second largest property company, in January 2005.

After several high-octane years at Credit Suisse First Boston (CSGN.VX) and a dynamic stint as chief operating officer at pre-Banco Santander (SAN.MC) Abbey, some in the banking elite thought Hester had put himself out to pasture with a move into property.