Who fiddled while Sir Fred was weaving his platinum parachute?

Lord Myners, the City Minister was lambasted by a fourteen member committee of MPs for failed to block Sir Fred Goodwin’s pension payoff, in the third part of its report into the causes and consequences of Britain’s banking crisis. The committee criticised Lord Myners claiming that he was too much of a City insider to properly police bonus payments and pension payments to bank executives It wouldn’t take too much of a poisoned mind to imagine a scenario of Lord Myners allowing Sir Fred Goodwin’s to leave the bank that he almost succeeded in ruining with a £703,000 a year life pension in his back pocket, through being totally unaware of what was going on in the last days of RBS under Sir Fred’s questionable management.

There may be many explanations why this was allowed to happen but the one that must spring to mind for many, especially the irate taxpayers who had to eventually dig the bank out of the very deep hole that Sir Fred and his hapless colleagues dug for them might well be “gross negligence.”Lord Myners, comes under heavy criticism for his “naiveté” in allowing Sir Fred Goodwin to engineer a scheme where the CEO apparently opted for early retirement ostensibly at the bank’s request without taking that fact into account when calculating the pension amount. Apparently Lord Myners was unaware of the precarious state that Sir Fred had led the RBS into, and if he had done so could have ordered his dismissal.

If this had been the case, Sir Fred would have been entitled to a mere £416,000 a year pension, and only from the age of 60. The report went on to add that the RBS board had shown itself to be incompetent in the management of the bank, steering it towards catastrophe, with most major policies, including bonuses and pensions at management level, probably handle under the “domination of Sir Fred Goodwin”. The chairman of the committee, which is expected to sit on several more occasions, went on to some up this particular and unfortunate chapter by saying “the design of bonus schemes was not aligned with the interests of shareholders and the long-term sustainability of the banks and has proved to be fundamentally flawed”.

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Tags: Financial News, Lord Myners, Sir Fred Goodwin, Taxpayers