Former Royal Bank of Scotland chief executive Sir Fred Goodwin has been stripped of his knighthood.
Prime Minister David Cameron announced two weeks ago that Goodwin’s knighthood would be referred to the honours forfeiture committee.
Goodwin was awarded the honour by the Labour government in 2004.
In a statement this evening, the Cabinet Office highlighted the seriousness of the bank’s bailout and Goodwin’s role in its downfall
A spokesman says: “Both the FSA and the Treasury Select Committee have investigated the reasons for this failure and its consequences.
“They 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.
“Fred Goodwin was the dominant decision maker at RBS at the time.”
The Government was forced to provide £20 billion to the troubled bank in 2008 in order to prevent its collapse. This quickly rose to £45.5 billion.