Sir Fred Goodwin is currently one of the most unpopular men in the UK. The former head of RBS, the bank that this week announced a £24,1 billion loss – the largest in UK corporate history, has said he fully intends to keep his pension plan. A plan that gives him £693,000 a year from a bank he promptly left when the government had to bail it out last October.
This is making Mr. Brown very angry. So angry that the government is apparently looking into a possible legal action to claw back some of the £16 million pension pot that Goodwin’s contract entitles him to. It is not yet clear what legal channels the government explores as RBS is contractually bound to the payments. Critics say that when the government took over the bank it should have been aware of RBS’ obligations to Fred Goodwin. It seems the only way to avoid paying is if Mr. Goodwin backs down. This is unlikely to happen as he has, according to himself, already forfeited salary payments and other bonuses since stepping down.
This is threatening to become another issue to sink Labour’s popularity, as the public feels the government should have done more to reign in banking excesses. The lesson is learned now, with a full overhaul of the bonus and payment system in banking, but it comes at a very costly price.
Goodwin is hates ALMOST as much as Gordon Brown now. Not quite. But almost.
The first thing Brown should do, is strip Goodwin of his Knighthood.
The UK government have successfully managed to get the public’s attention focused on Sir Fred’s pension rather than the massive £325bn of taxpayer guarantees given to RBS to underwrite their toxic assets, the additional £13bn invested in RBS to shore up their balance sheet taking public ownership to 84%, the promise of a further £6bn if required, taking public ownership up to 95% and the fact that the bank has lost £24bn. This is typical of ‘our’ government, they will do anything to divert attention from the real drama, this time they have succeeded magnificently. Their spin machine should be congratulated, meanwhile, the people of this country should be ashamed for being so easily duped.
Take a look here: http://britishpolitics.wordpress.com/2009/02/27/rbs-pension-scandal-or-attempt-to-divert-attention/