Showing posts with label Sir Fred Goodwin. Show all posts
Showing posts with label Sir Fred Goodwin. Show all posts

April 03, 2009

RBS: Sir Fred Goodwin 'Thinking About' Shredding His Pension

THE TELEGRAPH: Former Royal Bank of Scotland boss Sir Fred Goodwin - known as 'Fred the Shred' - is considering a "voluntary reduction" in his £703,000-a-year pension payout, the bank has confirmed.

Chairman Sir Philip Hampton said Sir Fred was thinking about the move, but said it was too soon to know what the outcome would be.

He said: "I've asked Sir Fred if he would consider a voluntary reduction and he's told me he's thinking about that."

The comments come ahead of the bank's annual general meeting in Edinburgh later on Friday, when angry shareholders are expected to vote down RBS's remuneration report in protest at Sir Fred's controversial pension payout.

RBS - now majority-owned by the taxpayer - also warned of more job losses in the UK and internationally as it said the 2,700 announced so far this year for the UK were "not the end of the story".

The embattled bank said it was still unclear how many redundancies would be made, but stressed it would do "all it can" to keep compulsory redundancies to a minimum.

The group is laying off staff as part of a plan to cut £2.5 billion from annual costs within the next three years. >>> | Friday, April 3, 2009

March 26, 2009

Fat Cats in Terror after Anti-capitalists Attack Fred the Shred's Home

MAIL Online: Security will be stepped up around fat-cat bankers after the home of disgraced former RBS boss Sir Fred Goodwin was targeted by vandals.

A statement claiming to be from the group responsible for damage at his £3million mansion warned of further attacks, saying: 'This is just the beginning.'

The threat sparked fears of a terror campaign against those blamed for the collapse in the financial system.

The concern is that anti-capitalist groups will copy the tactics of animal rights militants by directly targeting individuals they hold responsible for the credit crunch.

Tensions are already high, with anarchists reported to be plotting mayhem at next week's G20 summit in London.

Their intention is to paralyse the Square Mile by staging sit-in protests and storming financial institutions, with the Bank of England and RBS among the top targets.

Effigies of bankers will be hung from lampposts. Security adviser Dai Davies, a former head of Scotland Yard's Royalty Protection squad, said: 'Risk assessments will have to be carried out by the police on individuals who are concerned about their safety. If there is cause for concern then appropriate advice will be given and pre put in place.

'The developments at Sir Fred Goodwin's home will almost certainly make some other high-profile bankers want to review their own private security arrangements.' >>> By Stephen Wright | Thursday, March 26, 2009

THE GUARDIAN: Banks Braced for City Riots During G20 Summit after Attack on Sir Fred Goodwin's Home

Financial sector staff are warned to keep low profile / Former RBS boss 'shaken' after early morning raid

The last time bankers faced angry demonstrations, some responded by pouring champagne or photocopied £50 notes from windows, but it is unlikely that protesters targeting the City next week during the G20 summit will be met by similar shows of bravado.

Many staff are being advised to dress down next Wednesday and Thursday to avoid being marked out as City workers - if they cannot avoid the protests entirely by working from home. Others have been advised to avoid leaving the office to attend meetings.

Concern about possible violence heightened when the home of former Royal Bank of Scotland chairman Sir Fred Goodwin was vandalised early yesterday morning, leaving three windows shattered and the rear window of his black Mercedes smashed. An anonymous email was sent to media organisations shortly after the attack threatening further action against "criminal" bank bosses.

The former RBS boss, who had not been at home and is at the centre of a row over the size of his pension from the taxpayer-owned bank, was said to have been "shaken" by the incident.

Many in the City believe aggressive media coverage of the financial crisis has declared a virtual open season on financial sector workers.

The financial advisory group Bluefin, which employs 500 staff in London, has set up a phone line offering staff updates next week. Staff have been told not to go to its office in Mark Lane in the City unless absolutely necessary. "As a responsible employer, the safety and wellbeing of our staff is always considered of paramount importance," a spokesman said.

A UBS spokesman said the bank would continue to assess the level of threat as it got nearer the time. "We are telling people to be cautious. If you have client meetings, do you need to have them here? Some of the banks have said dress down or try not to move around. It is all pretty obvious. "It is quite co-ordinated among the banks. We all talk to each other. I think it is different if you are in a landmark building, some are more obvious than others."

Another banker complained that we "are in an era of the demonisation of financial services". >>> David Teather | Thursday, March 26, 2009

February 27, 2009

The Face that Turns Anyone's Stomach!

THE TELEGRAPH: Sir Fred Goodwin's £693,000-a-year pension is a symbol of banking excess we can ill afford, says Philip Johnston.

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’Fred the Shred’, the self-satisfied ex-boss of RBS who presided over the collapse of the bank, now walks away with pension arrangements in Monopoly figures whilst the taxpayer has to pick up the tab. Photo courtesy of The Telegraph

When he appeared before the Commons Treasury Select Committee a few weeks ago, Sir Fred Goodwin, the former chief executive of RBS, was asked about his pension arrangements. The Labour MP John Mann questioned whether his pension was linked to the fortunes of the once mighty bank that he had steered on to the rocks in his eight years at the helm. In light of the disclosure that Sir Fred is receiving a £693,000 annual pension from a 'pot' worth an estimated £25 million, it is worth recalling this exchange.

"Many pensioners in this country have seen their pension go down because share values have gone down", said Mr Mann. "As a principle, would it not be fair that your pension, which is rather a high pension – over £8 million I have seen quoted – would it not be fair to other pensioners in Britain that your pension was linked to the share value of the bank that you ran?" Sir Fred replied: "No, my pension is the same as everyone else in the Bank who is in a defined benefit pension scheme."

There was a populist edge to Mr Mann's line of questioning that should make anyone who believes in the free market and the right of successful individuals to enrich themselves feel uncomfortable. After all, is it being suggested that Sir Fred should not have a pension of any sort or a pay off when he is forced to leave his job? He also had a significant number of shares in RBS and therefore lost a lot of money when they fell in value from around £5.50 to 20p. On the other hand, he brought this disaster upon himself and many others who are far worse off than him; so why should he benefit in any way from the debacle?

What is most revealing about his evidence to MPs is what Sir Fred failed to say. When Mr Mann mentioned the figure of £8 million, he did not correct him and point out that it was, in fact, almost certainly three times that. Further sums, we now learn, were added to his pension pot shortly before the bank crashed with the biggest corporate debt in British history, forcing the taxpayer to rescue it. This top-up meant that Sir Fred could draw a pension even greater than his annual "basic" salary of £650,000 for the rest of his life. Pension analysts believe that to buy a £693,000 annual pension at the age of 50 would cost at least £25 million. >>> Philip Johnston | Friday, February 27, 2009

THE TELEGRAPH: Sir Fred Refuses to Give Back His Pension


THE TELEGRAPH:
Treasury Approved £700,000 Pension, Says Fred Goodwin: The "obscene" £693,000 a year pension paid to Sir Fred Goodwin, the man who steered Royal Bank of Scotland to the brink of collapse, was approved by Government ministers, it has emerged. >>> By Andrew Porter and Robert Winnett | Friday, February 27, 2009

The Dawning of a New Dark Age (Paperback & Hardback) – Free delivery >>>

February 26, 2009

Treasury Starts Legal Steps to 'Claw Back' Sir Fred Goodwin Pension Pot

TIMES ONLINE: Sir Fred Goodwin may be forced to give up some of his massive £650,000 pension if he refuses pleas to "do the decent thing" and surrender it voluntarily.

Alistair Darling, the Chancellor, today denied a suggestion from Sir Fred's successor at the Royal Bank of Scotland that the Government had known about the deal to top up the banker's pension pot when he left the ailing bank last year.

He also revealed that he had instructed a Treasury minister, Lord Myners, to contact Sir Fred and ask him voluntarily to give up some of his pension.

“I think people will find it very difficult to understand how you can get paid £650,000 a year for the rest of your life when just look at the state that RBS is in at the moment,” Mr Darling told BBC Radio 4. “You cannot justify these excesses, especially when you’ve got such a failure of this magnitude.” >>> Philip Webster, Political Editor, and Philippe Naughton | Thursday, February 26, 2009

BBC: RBS Reports Record Corporate Loss

Royal Bank of Scotland (RBS) has announced the largest annual loss in UK corporate history.

RBS, which had to be bailed out by the government last year, said that its 2008 loss totalled £24.1bn ($34.2bn).

It also said it would put £325bn of toxic assets into a scheme that offers insurance for any further losses.

RBS is under fire over the pension of former boss Sir Fred Goodwin and the chancellor said the government had asked him to forego some of it.

Speaking at a news conference, RBS chief executive Stephen Hester said the bank was "under no illusions" about the scale of the losses.

He added that it was important "to think about the past, to know what went wrong, to disclose it and to address those issues". >>> | Thursday, February 26, 2009

Watch BBC video: Gordon Brown has said 'nobody can support very extensive pension arangements' at this time. >>>

Watch BBC video: Liberal Democrat treasury spokesman Vince Cable has launched a scathing attack on the government's scheme to insure banks against big losses. >>>

Watch BBC video: Chancellor Alistair Darling has spoken about the huge pension awarded to former Royal Bank of Scotland (RBS) boss Sir Fred Goodwin.

RBS has come under fire, after it emerged Sir Fred, who retired at 50, is drawing a £650,000 a year pension.

Speaking in the Commons, Mr Darling said the government had no part in negotiating the agreement otherwise it would not have been approved. >>>


THE TELEGRAPH:
Sir Fred Goodwin Refuses to Give Up £693,000 RBS Pension: Sir Fred Goodwin, the former chief executive of Royal Bank of Scotland, has refused to give up his £693,000 a year pension and claims that a minister approved the deal. >>> By Katherine Griffiths | Thursday, February 26, 2009

The Dawning of a New Dark Age (Paperback & Hardback) – Free delivery >>>