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Former RBS chief Goodwin stripped of knighthood

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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.

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Readers' comments (5)

  • 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.

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  • The right decsion - he caused huge damage to the reputation of the finance industry, caused many innocent people to lose their jobs and has cost the taxpayer billions - as well as the reputational damage inflicted on the City of London. CEO's are paid enormous sums to get it right - and as a result must be held accountable. Furthermore - one cannot prove one's innocence by proving the guilt of others...

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  • I hope he sues the Labour Party for the return of his £100k 'donation' (or whatever the going rate was back then). That would be amusing.

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  • Not much chance, then, of Hector being given one. Good.

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  • If the stripping of Sir Fred's Knighthood is justified then every knighthood awarded to anyone in the Financial Sector should be removed.

    As to Anonymous @ 9:15am - he has been held accountable - he's lost his job, had his reputation dragged through a hedge backwards had his earnings decimated.

    Didn't hear all this bleating when he was getting it right and RBS shares were climbing in value, Dividend was being paid and everyone was doing just fine.

    Typical bleaters attitude.

    Completely agree with Harry Katz - Haig's title in NZ and Australian History is the Butcher as that is what he did to the ANZAC's at Gallipoli.

    Sir Fred has broken no law and has no ones blood on his hands.

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