News - Economics / markets
Former RBS chief executive Sir Fred Goodwin has had his knighthood cancelled and annulled by the Queen.
The honours forefeiture committee met earlier today to decide on Goodwin's fate, prime minister David Cameron having referred the issue in response to growing public and political pressure.
Goodwin presided over a huge expansion in the size of RBS between 2001 and 2008, culminating in the bank heading a £49bn consortium deal to buy Dutch bank ABN Amro at the top of the market in 2007.
The banker was awarded the knighthood for services to banking in 2004 but became a focal point of public anger during the financial crisis after the government was forced to make a £45bn bailout of the bank.
Cameron had earlier said the committee would take into account the FSA's recent report into the collapse of RBS, effectively nationalised in 2008 after making a £24.1bn loss with Goodwin at the helm.
Announcing the decision, the cabinet office said the "scale and severity" of the impact of Goodwin's actions while CEO of RBS.
"[Both the FSA and the Treasury Select Committee] are clear that the failure of RBS played an important role in the financial crisis of 2008-9 which, together with other macroeconomic factors, triggered the worst recession in the UK since the Second World War and imposed significant direct costs on British taxpayers and businesses," the statement said.
"Fred Goodwin was the dominant decision maker at RBS at the time."
"In reaching this decision, it was recognised that widespread concern about Fred Goodwin's decisions meant that the retention of a knighthood for "services to banking" could not be sustained."
Categories: Economics / Markets
Topics: Rbs
Comments
Political hypocrisy
In light of the decision to strip Fred Goodwin of his knighthood because of the popularity value of this at the hustings, could we not also call for the revoking of a significant number of political appointees to the Lords whose conduct has been equally distasteful in specific circumstances, but whose current positions do not raise the public ire. I think immediately of Lord Mandelson and the scandals that surrounded periods of his public office.
I would happily see both of them relieved of what should be awards for impeccable public service. How many other politicians and other industrialists have awards that with the cold benefit of hindsight should be removed. I would bet we could halve the House of Lords and corporate boards of expensive appointees with little true value, and that in this time of austerity can only be a good thing!
Posted by: Mike Inkley
31 Jan 2012 | 18:34
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Petty
Vindictive and petty. He didn’t do it on purpose – he was just wrong. He thought he was doing the right thing at the time.
There are plenty of those who were far worse. For example why not strip (Posthumously) Field Marshall Earl Haig of all his honours and accolades for the inept way he sent millions to their death in WW1? Now that really is someone who should be castigated and defenestrated.
I am no admirer of Fred, but this is really singling him as a scapegoat. Why not go after Crash Gordon and Avaricious Blair – they were the one who bestowed the honour in the first place.
Posted by: Harry Katz
31 Jan 2012 | 18:29
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