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Regulator probes RBS on Goodwin injunction

The FSA confirmed it has contacted Royal Bank of Scotland for details of the alleged relationship between former chief executive Sir Fred Goodwin and a colleague.

The regulator is yet to publish details of its report into the failure of the state-backed bank, which was originally expected in March, due to legal wrangling between the bank’s lawyers and the regulator over its content.

However, the regulator has contacted the bank after Liberal Democrat peer Lord Stoneham last week revealed in the House of Lords the details of a super-injunction protecting Goodwin.

Stoneham, who was speaking on behalf of Lord Oakeshott in the House of Lords, used Parliamentary privilege to argue it is in the public’s interest to find out the details of the events that took place in the run-up to the bank’s bailout by the state in 2008.

He said: “Every taxpayer has a direct public interest in the events leading up to the collapse of the Royal Bank of Scotland, so how can it be right for a super injunction to hide the alleged relationship between Sir Fred Goodwin and a senior colleague? If true, it would be a serious breach of corporate governance and not even the Financial Services Authority would be allowed to know about it.”

An FSA spokesman says: “We can confirm that we have contacted RBS in relation to this matter. We cannot comment further at this time.”

RBS says it is “co-operating fully with the FSA”.

Alexander Hall chief operating officer Andy Pratt says: “The public is looking for justice to be done and the right information to be circulated rather than just being swept under the carpet.”


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