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The Fred Goodwin knighthood row: Mehi Hasan on five things to consider

Don't be distracted by Goodwin; the real issue is bonuses.

1) Let us be under no illusions: Frederick Anderson Goodwin is an awful, awful man who doesn't deserve anyone's sympathy - or pity. I say this not just because, as Alex Brummer points out in today's Mail, "he was he felt able to conduct an extramarital affair with a senior female colleague" and "then hid behind a court injunction until he was found out", but because, by all accounts, he was a terrible, terrible boss to work for. Have a read of the recent book, Masters of Nothing by Tory MPs Matthew Hancock and Nadhim Zahawi, which paints an, ahem, unflattering portrait, shall we say, of the power-crazy former RBS boss.

From the Evening Standard:

The book claims Sir Fred, 53, could not control his anger if the wrong type of biscuit was put in the boardroom, and even threatened catering staff with disciplinary action in an email titled "Rogue Biscuits" after executives were offered pink wafers.

RBS staff also "went into panic mode" after a window cleaner fell off a ladder in Sir Fred's office and broke a toy plane, the authors allege.

At dinner functions, an engineer was also kept on standby until the early hours to switch off fire alarms when executives wanted to smoke.

Peter de Vink, managing director of Edinburgh Financial & General Holdings, said bank staff "were absolutely terrified of him".

2) Having acknowledged how bad a boss Goodwin was, and how odious an individual he is, it is, however, worth noting that he has been made a bit of a convenient scapegoat since the crash in 2008. Remember: Goodwin's disastrous decision to pay a total of £71billion for debt-laden Dutch bank ABN Amro in the autumn of 2007, just as the credit crunch took hold, was backed by the RBS board and not prevented or questioned by the regulators. Few financial journalists sounded alarm bells; there was not a peep from Downing Street or the Treasury.

Also, it is often forgotten that the then Barclays boss John Varley had been involved in a bidding war with Goodwin for ABN Amro - which helped drive the price up. Had Barclays, rather than RBS, ended up buying the Dutch bank, Varley might be as reviled and ridiculed today as Fred "the Shred" Goodwin. Instead, Varley retired from his post as chief executive of Barclays in 2010 with his reputation - and his windows - intact.

3) Is it unfair and/or disproportionate to strip Goodwin of his knighthood? The government revealed yesterday that Goodwin's title had been referred to the "forfeiture committee".

Goodwin is not guilty of any crime. The Guardian points out:

Since 1995, the committee has recommended that 34 people, including the Zimbabwean president, Robert Mugabe, be stripped of their honours. Honours are normally taken away only if someone has been found guilty of a criminal offence or has been reprimanded by their professional regulator, including a professional register.

But the question is: why wasn't Goodwin investigated or prosecuted? Why weren't bankers arrested and charged with breaking the law, as they drove the economy off a cliff? Why wasn't the Serious Fraud Office brought in at the start of the financial crisis? These are questions that are starting to be posed on both sides of the Atlantic.

"Forgive me, I must start by pointing out that three years after our horrific financial crisis caused by financial fraud, not a single financial executive has gone to jail, and that's wrong," said Charles Ferguson, director of the documentary Inside Job, as he accepted his Oscar last year.

"Why have no bankers been arrested?" Jon Snow asked Treasury minister Mark Hoban on Channel 4 News in September 2011. Snow later noted on his blog:

[I]nvestigators on both sides of the Atlantic have had no doubt that criminality, subterfuge, and downright dishonesty accompanied many of the ingredients that brought about the crash. At the very least there was gross dishonesty in the representation of exposure to the sub-prime mortgage business.

...In one month, hundreds of rioters and looters have been prosecuted and punished by the English courts, often for offences with a value of under fifty pounds. Yet the threat to the wellbeing of UKplc was far greater from the bankers than from any number of more arrestable rioters.

There is a strong impression abroad that the UK doesn't want to prosecute anyone for the banking crisis, a crisis that has affected every tax payer in the Kingdom.

Soon enough the statute of limitations will kick in to ensure that no-one will ever be prosecuted for their role.

4) If Ed Miliband is looking to apologise for things Labour did wrong in its 13 years of office, in order to win back public trust, he could start by saying sorry for the party's indulgence of all the top bankers in the City, not just "Fred the Shred". According to an investigation by the Daily Mail in 2009:

Labour has given 23 bankers honours, brought three into the Government as ministers and involved 37 in commissions and advisory bodies.

In today's Independent, John Kampfner reminds us of how deferential to, and in awe of, the City, Labour's leaders were:

It is salutary at moments like these, with David Cameron opining about the miscreant behaviour of Fred Goodwin and his like, to recall a speech given by Gordon Brown. It was delivered in April 2004, as he was trying to oust Tony Blair. "I would like to pay tribute to the contribution you and your company make to the prosperity of Britain," the then Chancellor declared. He was opening the European headquarters, in London's Canary Wharf, of Lehman Brothers, the bank that later went down the Swanee, almost taking with it the entire financial system. Talking of "greatness", Brown added: "During its 150-year history, Lehman Brothers has always been an innovator, financing new ideas and inventions before many others even began to realise their potential."

5) The shadow business secretary, Chuka Umunna, among others, is right to warn that Cameron and co must not be allowed to use a story about the former RBS chief executive to distract attention from the current RBS chief executive, Stephen Hester, and reports that he is in line to receive a £1.5m bonus - despite the RBS share price having halved over the last year. This is the real test for Cameron - not whether he strips Goodwin of his title but whether he has the power and resolve to deny Hester his ludicrous bonus

Channel 4 News's Gary Gibbon asks on his blog:

Is going for Sir Fred a decoy for bonus row?

I suspect it is. The real issue is bank bonuses: despite the tough talk, the Conservative-Lib Dem coalition has so far failed to stop massive payouts. So don't be distracted by Goodwin; keep your eyes on Hester.

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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Overlooking the effect of Brexit on Northern Ireland is dangerous for the whole UK

We voted to remain in the European Union. The tensions caused by the referendum outcome, and ignoring its effect on us, will cause utter carnage in Northern Ireland.

I’ve been from Northern Ireland all my life. Having spent many years living in Dublin, and now London, I’m quite used to that very fact making people uncomfortable. I get it. From a glance at the news, it would seem we fight each other about flags and anthems and are inexcusably proud of throwing glass at people in bowler hats, or daubing on our own homes the worst paintings ever committed to brickwork. Our tiny little protectorate has generated such disproportionate levels of confusing violence, most people are terrified of saying the wrong thing about any of it. We’re the celiac vegans of nationalities; the worry is that almost anything you offer will offend.

Most people avoid such worries by – whisper it – simply never acknowledging that we exist. This reflexive forgetfulness is, of course, a happy state of affairs compared to what went before. I refer, of course, to the period named, with that Ulster-tinged strain of sardonic understatement, the Troubles, when some 3,600 people were killed and ten times that injured. By some estimates, as many as 115,000 people lost a close relative to violence in this time, and many more a good friend, a colleague or an old school pal. Taken as a portion of 1.5m people, this means a startlingly high percentage of Northern Irish citizens have been directly affected by the conflict, certainly a higher percentage than that of, say, the English electorate who have ever voted for Ukip.

Northern Ireland also contains Britain’s only fully open border with the EU. I know because I grew up on it, specifically between Derry and Donegal, where my dad's back fence demarked an invisible boundary, a small hop from the UK to the Republic, and back. From a migration point of view, this poses a problem, so when Brexit was being deliberated, it did seem odd that Northern Ireland was barely mentioned at all, that the one border that exists in the entire country was given such scant reference during the campaign’s interminable duration. A dreaded EU migrant, travelling freely through Ireland toward my father’s house will not be subject to border checks once he has passed it quietly behind him. No machine guns, no "papers please", none of the fortified rigour mandated by the Leave campaign. Implementing such fortifications would, of course, be a practical nightmare, since so many live in Ireland but work in the UK, and vice versa. But the psychological effect of such a move would be infinitely worse.


Much of the Good Friday Agreement was predicated on free movement between north and south, and cross-border bodies that reinforced a soft-union of the two states; just enough to ameliorate nationalists, but nothing so resembling a united Ireland as to antagonise unionists. Making Irish-identifying Northern Irish citizens undergo any form of border checkpoint between the two countries would not just be a bureaucratic hassle, it would massively inhibit the self-determination nearly half of Northern Ireland's population takes from both countries’ status within a wider European state.

The peace that exists rests largely on this status quo, the acceptance of people who reject violent means and see little injustice in being allowed to live their lives within a British state that dignifies their close connection to their southern neighbours. It is hard to overstate how different this situation would be were armed checkpoints to re-emerge. I remember checkpoints as a child. I remember machine guns and dogs and my dad making sure we weren't nervous while he was being interrogated by armed men inspecting his driving license and checking under our car for explosives. This was every day. Rather than some novel development, this will be a direct, unbidden return to something we worked very, very hard to get away from, something we were promised was over, and something for which thousands of very stubborn, dangerous people struck what many considered a highly improbable truce.

It is this effort to which thousands of Northern Irish people now owe their lives, to which tens, perhaps hundreds, of thousands more can count among the living and healthy their siblings, their friends, their colleagues. This may not be at the forefront of minds in Carlisle or Cornwall or aboard the statesmanlike grandeur of a battlebus, but it is the lived reality of Northern Irish people. To stoke up these tensions risks sleepwalking out of a peace that was hard-fought and long considered unthinkable. To do so as a side effect of what appears to be, on its face, little more than a tussle for the leadership of a single political party with little-to-no presence in Northern Ireland seems distasteful in the extreme.

Having stating these facts to friends here in London, I’ve been touched by their sorrow for our plight but, for all their sympathy, it might still not have registered that our problems have a tradition of travelling to people in London and Dublin, in Birmingham and in Monaghan. If greater care is not given to the thoughts, aspirations and fears of Northern Irish people, and those still-present agents of chaos who would seek to use such discontent to their own violent ends, we risk losing a lot more than free use of bagpipes or pleasingly bendy bananas.

Westminster must listen to those who would bear the burden of Fortress Britain’s turrets near their homes or else, to borrow a phrase, Brexit will be a threat to our national security, our economic security and your family's security.

Séamas O'Reilly is a writer and musician. He tweets @shockproofbeats. His website is shocko.info.