Fred Goodwin, Ex-RBS CEO, Stripped Of UK Knighthood

LONDON, Jan 31 (Reuters) - Britain took the rare step of stripping former Royal Bank of Scotland chief Fred Goodwin of his knighthood, following intense criticism of his role in RBS' near-collapse during the 2008 credit crisis, and public anger towards wealthy bankers.

"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 government said in a statement.

"Fred Goodwin was the dominant decision maker at RBS at the time," it added, explaining a decision taken by a committee of civil servants.

Goodwin had been awarded the knighthood in 2004 for services to banking, but has since come under heavy criticism from the public after taxpayer funds were used to bail out the stricken bank.

The government said it would soon be announced that Goodwin's knighthood had been "cancelled and annulled".

The Scottish banker spearheaded RBS' disastrous acquisition of Dutch bank ABN AMRO, which nearly caused the collapse of RBS during the 2008 crisis.

RBS ended up having to be propped up with 45 billion pounds ($71 billion) of taxpayers' money, with the government finishing up with an 83 percent stake in the bank.

It is very rare for Britain to remove people of their knighthoods, and Goodwin joins the ranks of figures such as former Romanian dictator Nicolae Ceausescu who forfeited an honorary knighthood.

The woes of RBS have come to symbolise for many in Britain more serious problems with the country's banking industry.

Many are still angry at the fact that bankers are continuing to get paid millions while elsewhere thousands lose their jobs as the economy weakens.

On Sunday, the current chief executive of RBS - Stephen Hester - was forced to decline a million pound share bonus after the award had been attacked by all major British political parties.

Comments

[unity13]

01:29 AM on 02/16/2012

I'm sure he's just devastated over losing his knighthood. He probably cried all the way to the bank...

[mag ali]

03:53 PM on 02/02/2012

Forget it Fred!..... Remember the song??? You are too sexy for the Queen ...too sexy for the Queen...too sexy.You are too sexy for the bank...too sexy for the bank....too sexy...

[ArchbishopBenevolent]

08:54 PM on 02/01/2012

I cannot understand why queen Lizzy wants to pull the plug on knighthood for this guy. After all the pope Benny has not pulled the plug on Rupert Murdoch's knighthood despite his divorce, the wiretapping, police bribery and influence peddling.

That said London is pretty much the world capital for fraud, shady schemes and criminal financial activity. Many banks and financial institutions house their shadier businesses in London. The AIG units that nearly brought down the world financial institutions were based in London. Most of the bailout money went into London system.

[ArchbishopBenevolent]

02:45 PM on 02/01/2012

Knighthoods are joke anyway.

[jo smith456]

11:20 AM on 02/01/2012

HOW ABOUT revoking the Nobel Peace Prize for those still-living awardees but "keep silent" or "even indirectly promote" genocidal treatment of the Palestinians?????

[blacksmithn]

10:15 AM on 02/01/2012

Will he have to return the suit of armor, too?

[mooremostam]

09:23 AM on 02/01/2012

well fred your probbaly no worse than the rest your all a bunch of crooks, from mps to bankers. what this country needs is a dozen richard bransons helped out by tescos they seem to make out okay,they of corse are private secter making money so public secter can waste it. moz

[kibblezNbitz]

06:40 PM on 02/18/2012

RBS IS a privately held bank, meaning that it's part of your beloved private sector. Richard Branson is no different. If "Virgin" when under, he would be looking for a government bailout/handout as well...:P

[HymnsToSilence]

08:50 AM on 02/01/2012

These folks have no talent, they create poverty for others, and are paid obscene amounts of money. When will the people give them all the boot?

[HymnsToSilence]

08:46 AM on 02/01/2012

The article did not say where he was serving his sentence. Oh I understand now, he loses nothing except his knighthood. Well, I guess that punishment fits his deeds.

[Bob Metcalfe]

12:16 AM on 02/01/2012

'the rare step'.....It'd be even rarer if they put him in jail.

[maryegunyu]

08:41 PM on 01/31/2012

Politics to the
extreme and a trait of turning your back on friends in difficult times. Whatever is to be said about what he has 'done', question is he suffering because his was the bank unfortunate to end up with a government bailout. To all intents and purposes escape-goatism could well hide here. Voila! One humilated banker, but how many do-gooders that have piled the pressure that has led to his abjection have a clean concsience? Let the sin free throw the first stone or any stone at all. If he is deserving of no knighthood then more in similar high places are possibly disgrace worthy. If I were Fred, gladly rid of a capricious title then. What next, take him and surely all implicated with similar conduct during the banking crisis to court? If this is not just blood letting, then the powers that assert his actions are this questionable should uphold their integrity and weed all his type out of the economy, then we shall usher in responsible CAPITALISM. Anyway, as he is this dishonourable, why has it taken this long to see? Is this face saving, political brinkmanship or genuine concern for the 99%, what gain and who gains? Folks, comprehensive action beyond this past sell by date reprimand of Fred will convince that the system has pushed the selfclean button. Fred, perhaps 'tis time to leave the country for a break. Come back when the furore over bonuses at RBS is over.

[Janzee12000]

06:23 PM on 01/31/2012

Well, there goes all those 'round table' perks, free turkey drumsticks and steins of mead..

[jbird606]

06:19 PM on 01/31/2012

Oh my gawd. One less Knight? Who will save us from the dragon?

[cats530]

05:46 PM on 01/31/2012

As Nelson Mandela Muntz would say, "Ha ha."

[vinyl1]

04:46 PM on 01/31/2012

He is not really a fraud. The acquisition of ABN AMRO was very unwise, but it did not violate any laws, was conducted in a straightforward and open manner, and was approved by the FSA. The FSA has since offered a feeble excuse why they didn't stop it.

[cats530]

05:56 PM on 01/31/2012

are you an admirer of Nicolae Ceausescu too?

[vinyl1]

08:27 AM on 02/01/2012

I'm just pointing out the facts. The UK is a democratic nation with just laws that are enforced by an impartial judiciary, and this guy didn't violate any of them.

That doesn't mean he was a great CEO. In fact, he was an idiot to buy AMRO. But if it were illegal to act like an idiot, half the population would be in jail.