"of £1 million each in bonuses. Consequently, former CEO Fred Goodwin was stripped of his knighthood in mid-January, and newly appointed CEO Stephen Hester renounced his £1 million bonus after complaints over the bank's performance. 82 percent of Royal Bank of Scotland's shares are now owned by the UK government, which bought Royal Bank of Scotland stock for £42 billion, representing 50 pence per share. In 2011, the shares were worth 19 pence, representing a taxpayer book loss of £26 billion. Historically, the Royal Bank of Scotland stock price went from a high of over 6,900 pence in early 2007"
"January 2009 – a month before RBS announced that its 2008 loss totalled £24.1 billion, the largest annual loss in UK corporate history. From January 2010, he was employed as a senior adviser to RMJM, an international architecture firm. He left the position after less than a year. Goodwin was knighted in 2004 for his services to banking, but in a highly unusual move the honour was annulled by the Queen on 1 February 2012. The Cabinet Office explained ""The scale and severity of the impact of his actions as CEO of RBS made this an exceptional case."" Born in"
"spent £200m on celebrity endorsements also went down badly. In February 2009 RBS reported that while Fred Goodwin was at the helm it had posted a loss of £24.1bn, the biggest loss in UK corporate history. His responsibility for the expansion of RBS, which led to the losses, has drawn widespread criticism. His image was not enhanced by the news that emerged in questioning by the Treasury Select Committee of the House of Commons on 10 February 2009, that Goodwin has no technical bank training, and has no formal banking qualifications. In January 2009 ""The Guardian""'s City editor Julia Finch"
"recapitalising the Group. HM Treasury subscribed for £5 billion in preference shares and underwrote the issuance of £15bn of new ordinary shares offered to RBS shareholders and new institutional shareholders at the fixed price of 65.5p. As a consequence of the mismanagement which necessitated this rescue, the chief executive, Fred Goodwin (who secured the takeover of NatWest), offered his resignation, which was duly accepted. Chairman Sir Tom McKillop also confirmed he would stand down from that role when his contract expired in 2009. Goodwin was replaced by Stephen Hester, previously chief executive of British Land. In 2009 the RBS Group"
"of disorder"" led to the bank implementing sloping-top filing cabinets to prevent employees from placing items at the top of the cabinets. In February 2009, RBS reported that while Goodwin was at the helm it had posted a loss of £24.1 billion, the biggest loss in UK corporate history. His responsibility for the expansion of RBS, which led to the losses, has drawn widespread criticism. During questioning by the Treasury Select Committee of the House of Commons on 10 February 2009, it emerged that Goodwin had no technical bank training and no formal banking qualifications. In January 2009, ""The Guardian""'s"
"on a UK Government bank rescue package to support a shareholder recapitalisation of the bank, which resulted in the government owning a majority of the shares. Following two rights issues in 2008, Goodwin resigned as Chief Executive. On 13 October 2008, as part of the arrangement for government support (of which Goodwin said ""This isn't a negotiation, it's a drive-by shooting""), it was announced that Goodwin was to stand down as CEO, to be replaced by Stephen Hester. Goodwin formally left RBS on 1 January 2009. According to the ""Daily Mail"", Goodwin had been 'regarded by analysts as one of"
"Goodwin, former chief executive of Royal Bank of Scotland, was stripped of his knighthood this year. The former HBOS manager also said he did not think he would be granted permission to run a bank again. His successor Andy Hornby, who was at the helm of HBOS when it nearly collapsed in 2008, reiterated in a separate testimony at the commission his 'heartfelt apologies for what had happened at HBOS'. The two former chief executives’ grilling came as Andy Haldane, the Bank of England’s executive director in charge of financial stability, said the impact of the banking crisis was 'as"
"liquidation of Bank of Credit and Commerce International after its collapse in July 1991. At 32, Goodwin was in charge of 1,000 people with teams from London to Abu Dhabi and the Cayman Islands that eventually returned over half the money from one of the most complicated, high-profile financial frauds ever. His move into banking came through his work at Touche Ross with the National Australia Bank, contributing due diligence to its 1987 takeover of Clydesdale Bank from the then Midland Bank and again with its 1995 takeover of Yorkshire Bank. During work on the latter he caught the eye"
"applicant were identified as a banker that would be likely to lead to his being named, which would defeat the purpose of granting him anonymity"". The judge criticised press reporting of the case as including ""misleading and inaccurate statements"". Goodwin has chaired various government task forces including one examining the work of credit unions and the New Deal programme. He is a former president of the Chartered Institute of Bankers in Scotland. Goodwin became chairman of The Prince's Trust in 2003. It was announced in January 2009 that his tenure would not be renewed for another three-year term, which he"
"controversial amongst political and business figures, who pointed out the three-and-a-half-year gap since the near-collapse of RBS, and the coincidence of the referral taking place during a political argument over bonus payments to the current head of the bank. Alistair Darling described the annulment as having appeared to have been taken ""on a whim"", whilst the Institute of Directors warned against creating ""anti-business hysteria"". Darling declared “There is something tawdry about the government directing its fire at Fred Goodwin alone; if it’s right to annul his knighthood, what about the honours of others who were involved in RBS and HBOS?”"
"left in June 2009. In January 2009, it was rumoured that Goodwin was being considered as a replacement for Max Mosley as President of the FIA (Formula One's governing body) as Mosley was due to step down in 2009. Goodwin, a motoring enthusiast, had been ""instrumental"" in RBS's sponsorship deal with the Williams Formula One team. In February 2009, RBS announced that the £10 million-a-year deal, struck in 2005, would end in 2010, as part of a strategic review of all sponsorship activity. One of Goodwin's hobbies is restoring classic cars – the first, a Standard 8, bought from the"
"2009, Goodwin defended his decision to refuse to reduce his pension entitlement in a letter to Lord Myners on 26 February, pointing out that on leaving in October 2008 he had given up a contractual 12-month notice period worth around £1.29 million and share options worth around £300,000. In March 2009 Lord Myners revealed that part of the reason Goodwin's pension was so large was that RBS treated him as having joined the pension scheme from age 20 (instead of 40, when he actually joined) and ignored contributions to his pension from previous employment. Stephen Timms, a government finance minister,"
"2008/9, the RBS group was effectively nationalised: the UK Government owns nearly 70% of the ordinary shares of the company owing to its enormous debts. By January 2009, the share price was more than 98% down from its February 2007 peak. During Goodwin's tenure as CEO he attracted criticism for lavish spending, including expenditure on the construction of a £350 million headquarters at Gogarburn outside Edinburgh opened by Her Majesty the Queen in 2005 (described by one commentator as ""comically expensive"",) and $500m headquarters in the US begun in 2006 as well as the use of a Dassault Falcon 900"
"circumstances."" A Labour MP from Scotland, Jim Sheridan, repeated the suggestion, and added that the police should investigate the activities of senior bankers. In November 2009 as Goodwin emerged in public for the first time in months, it was revealed that he had hired Phil Hall the former editor of ""Hello!"" magazine, to help him rebuild his damaged reputation. Speaking to the ""Daily Mail"", Hall said ""...he knows that what he did has caused problems...He is in a pretty difficult situation. He's not a criminal...You don't realise the impact all this is having on him and his family. He just"
"new capital into Royal Bank of Scotland Group Plc, Lloyds TSB and HBOS Plc, to avert financial sector collapse. This resulted in a total government ownership in RBS of 58%. As a consequence of this rescue, the chief executive of the group Fred Goodwin offered his resignation, which was duly accepted. In January 2009, RBS announced a loss of £28bn of which £20bn was due to the ABN AMRO acquisition. At the same time, the government converted its preference shares to ordinary shares resulting in a 70% ownership of RBS. On 11 July 2008, Fortis CEO Jean Votron stepped down"
"and its solution to both challenges was to sell Clydesdale (along with Midland's Irish subsidiaries) to National Australia Bank in 1987. In 1989 National Australia Bank bought the Clydesdale bank for £420 million. Fred Goodwin, an accountant working for Touche Ross, worked on the acquisition. In 1995 Goodwin, with little direct banking experience, was appointed deputy CEO of the Clydesdale until 1997. During this period Goodwin earned the nickname ""Fred the shred"" for his aggressive manner in dealing with staff. In September 2013 the bank was fined £8.9 million after miscalculating the mortgage repayments of more than 42,000 customers. In"
"2008, and the shares were sold on 14 January 2009. Exchange rate fluctuations meant that RBS made no profit on the deal. The Scottish press suggested two reasons for the move: the need for a bank mainly owned by HM Treasury to focus scarce capital on British markets, and the growth possibility of RBS's own China operations. Also in March 2009, RBS revealed that its traders had been involved in the purchase and sale of sub-prime securities under the supervision of Fred Goodwin. In September 2009, RBS and NatWest announced dramatic cuts in their overdraft fees including the unpaid item"
"February 2009. On 15 February 2009 Fine Gael leader Enda Kenny, speaking in County Cork, asked the entire board of the Central Bank of Ireland's Financial Regulation section to resign. In late 2009 the Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009 came into effect Amidst the crisis, the ruling Fianna Fáil party fell to fourth place in an opinion poll conducted by ""The Irish Times"", placing behind Fine Gael, Labour and Sinn Féin, putting Labour and Sinn Féin ahead of Fianna Fáil for the first time in Irish history. On the evening of 21 November 2010, the then Taoiseach Brian"
"a banker"". As matters discussed in Parliament can be freely reported by the press, newspapers including ""The Guardian"", ""The Independent"", and ""The Daily Telegraph"", reported that Goodwin had obtained such an injunction, while still remaining unable to explain what information the injunction restricted the publication of. On 19 May 2011, Lord Stoneham, speaking in the House of Lords, asked the Government ""how can it be right for a super-injunction to hide the alleged relationship between Sir [""sic""] Fred Goodwin and a senior colleague?"" Later that day, the High Court varied the order, allowing Goodwin's name to be published, but continued"
"banking supervision to the Financial Services Authority. Controversial moves included the abolition of advance corporation tax (ACT) relief in his first budget, and the removal in his final budget of the 10% ""starting rate"" of personal income tax which he had introduced in 1999. In 2007, Tony Blair resigned as Prime Minister and Labour Leader and Brown was chosen to replace him in an uncontested election. After initial rises in opinion polls following Brown becoming Prime Minister, Labour's popularity declined with the onset of a recession in 2008, leading to poor results in the local and European elections in 2009."
"Goodwin,"" with Goodwin promoted to CEO in January 2001, soon after it was secured, dedicated to continuing Mathewson's vision. Goodwin lived up to his reputation, cutting 18,000 jobs by merging parts of RBS and NatWest. After the purchase of NatWest, RBS made a string of further acquisitions around the world, including the purchase of Irish mortgage provider First Active and UK insurers Churchill Insurance and Direct Line. During negotiations with Credit Suisse over the acquisition of Churchill, it is said that Goodwin maintained silence for an hour at lunch with Credit Suisse's CEO, supporting his demand for indemnity against any"
"pariah”. Media and government criticism increased on disclosure in February 2009 of the size of Goodwin's pension. The treasury minister Lord Myners had indicated to RBS that there should be ""no reward for failure"", but Goodwin's pension entitlement, represented by a notional fund of £8 million, was doubled, to a notional fund of £16 million or more, because under the terms of the scheme he was entitled to receive, at age 50, benefits which would otherwise have been available to him only if he had worked until age 60. Sir Philip Hampton, RBS's new chairman, stated that as a result"
"October 2008 decision on Goodwin's employment termination, the corporate approval process of the pension award and HM Treasury involvement was submitted to the Treasury Select Committee. Had he been dismissed instead of accepting early retirement, his annual pension would have been £416,000, payable from age 60. If the government had not stopped RBS from going bankrupt, his pension would have been paid out of the pension-protection fund and been £28,000 a year, starting at age 65. His home in The Grange, Edinburgh was vandalised on 25 March 2009 by an anti-banking group apparently known as ""Bank Bosses Are Criminals"" according"
"of Finance. The second meeting took place on 28 July 2008, at Druids Glen, County Wicklow. At that time Anglo Irish Bank was badly affected by the downturn in the property market. On 28 September 2008, the Irish government made the decision to introduce a bank guarantee to cover Anglo Irish Bank, Allied Irish Banks and Bank of Ireland. Seán FitzPatrick was forced to resign in January 2009, over the Anglo Irish Bank hidden loans controversy. The meeting, over a seven-hour period, took place over a round of golf and a subsequent dinner with Fitzpatrick and two other directors of"
"to a newspaper who were sent details of the attack by the group. In their message, they said Several windows in his house were smashed, and a car damaged in the drive below. On 18 June 2009, RBS stated that following negotiation an agreement was reached between RBS and Goodwin to reduce his pension to £342,500 a year from the £555,000 set in February after he took out an estimated £2.7 million tax-free lump sum. The agreement followed the completion of RBS's internal inquiry into Goodwin's conduct, which found no wrongdoing. On 10 March 2011, John Hemming, a backbench Liberal"
"of the growth coming from its investment banking business. However, following a shareholder crisis meeting in the midst of a $12bn rights issue, Tom was criticized for ""re-arranging the cosy deck-chairs on the sinking titanic"", and Goodwin was criticised by RBS shareholders for selling shares at half the price of the shareholder's given value. Having nearly trebled between February 2000 and May 2002 the share price halved from 2006 to 2008. It had lost 95% of its value by 2009. Goodwin was accused of megalomania by some shareholders, as reported by Dresdner Kleinwort analyst James Eden (who said he thought"
"their revelation. The Fine Gael finance spokesman Richard Bruton called for the board and senior management of the Financial Regulator to be sacked. The Financial Regulator hired a partner from Ernst & Young, to advise on the €440 billion bank guarantee scheme in January 2009, despite the fact that serious questions have been asked about why Ernst & Young did not spot the massive loans that former chief executive Seán FitzPatrick concealed from his shareholders for eight years. Consultants Mazars, which reviewed their operations said ""that regulatory expertise was lacking in some areas."" On the evening of 17 February 2009,"
"short-term financial returns. Between 2002 and 2005, the share price plateaued at around £17 per share, having nearly trebled between February 2000 and May 2002. Goodwin was accused of megalomania by some shareholders, as reported by Dresdner Kleinwort analyst James Eden (who said he thought the label was 'unwarranted'). After the Bank of China deal, he was forced to promise RBS shareholders he would not indulge in any further big acquisitions and focus instead on growing the group organically. However, in early 2007, Dutch bank ABN Amro was under pressure from hedge funds, including Chris Hohn of the hedge fund"
"loan and a reversal of previous strategy to pay the loan off as quickly as possible by actively encouraging mortgage customers to leave when their mortgage deal matured. The reason for this change was government policy to increase the availability of credit. This £14 billion was to be split into £5 billion in 2009 and £9 billion in 2010. Potential buyers for the bank included Virgin Money, National Australia Bank, NBNK, Santander, Blackstone, Tesco, TowerBrook, Yorkshire Building Society and Coventry Building Society. Former Chancellor of the Exchequer Alistair Darling had stated that he was in no ""hurry"" to return the"
"volatility in deposits in Anglo Irish Bank has been stated as one of the reasons why the Government moved to nationalise it. The Financial Regulator has stated that the transactions which took place between the two banks are ""unacceptable"" and the chief executive of Irish Life and Permanent, Denis Casey, has resigned his position. However, in a press release dated 13 February 2009, the Financial Regulator revealed that ""it encouraged Irish banks to work together where necessary so as to continue to use normal inter-bank funding arrangements for liquidity purposes."" On the evening of 17 February 2009 the Chairman of"
"with HBOS. He built a reputation for being quietly spoken, thoughtful and not prone to superlatives - what many would describe as excellent, he would say was ""pleasing"". On 20 September 2010 it was announced that he would be retiring as Chief Executive of Lloyds. He was questioned about the banking crisis during a session of the Treasury Select Committee of the House of Commons on February 12, 2009. One of the key issues concerned Lloyds takeover of HBOS in 2008, and the amount of due diligence carried out before the acquisition. He said that a company would always like"
"the affair. The bank's internal controls and risk management were severely criticised in 2000 and its aggressive push into investment banking questioned, after a lengthy investigation by the Securities and Futures Authority. The bank's move into complicated derivative products that it did not fully understand seemed to indicate poor management. By the end of 1997 parts of NatWest Markets had been sold, others becoming Greenwich NatWest in 1998. In 1999, the chairman, Lord Alexander of Weedon, announced a merger with Legal & General in a friendly £10.7 billion deal, the first between a bank and an insurance company in UK"
"place in relation to these loans, the Central Bank of Ireland was of the view that the practices surrounding these loans were not appropriate. As a result, we continued to monitor and investigate this and as part of this process we advised Anglo-Irish Bank to ensure that these loans are reported in the annual accounts for 2008."" The Financial Regulator resigned in January 2009 under pressure to do so. In February 2009, Gardaí from the Bureau of Fraud Investigation raided the offices of Anglo Irish Bank. In Anglo Irish Bank's 2009 Annual Report it lists loans to former directors totalling"