Fred Goodwin stripped of knighthood

The former head of RBS has been stripped of his title.

Sir Fred Goodwin, former head of the Royal Bank of Scotland and national hate figure, is to be stripped of his knighthood.

Following advice from a panel of civil servants, the Queen has cancelled and annulled his title, which was awarded to him by the Labour government in 2004 for "services to banking".

Goodwin has been blamed for the collapse of RBS, where he was chief executive from 2001 to 2008. He pursued aggressive strategies in corporate lending and investment banking, and his high-risk acquisition of Dutch rival ABN Amro in 2007 -- at the height of the crisis -- meant that RBS had to be bailed out with £45bn of taxpayer money.

He certainly did himself no favours, refusing to apologise or to return any of his £16.9m pension. (After months of pressure from the public and politicians, he eventually agreed to give up a third of it).

Generally, people are only stripped of honours if they have committed a serious crime or been struck off by their professional register. This could be seen as vindication for those -- such as the makers of Inside Job -- who are incredulous that not a single banker has faced criminal charges for their role in the crash.

It would certainly be hard to argue that Goodwin deserves to keep his knighthood -- his actions led to thousands of job losses at RBS, and he played a part in bringing the economy to its knees. But for all the satisfaction of this moment, it is worth remembering that Goodwin did not act in isolation. Indeed, as my colleague Mehdi Hasan pointed out this month, Jon Varley of Barclays was engaged in a bidding war with Goodwin for ABN Amro - had he been successful, rather than Goodwin, we might have had ended up with a very different hate figure. Nor is "Fred the Shred" the only banker to have been given an honour by the last government.

Coming in the same week as Stephen Hester, Goodwin's successor, was forced to refuse his bonus package, this would seem to indicate that the tides are turning against the bankers. But, as I argued last week, this type of gesture politics does nothing to tackle the underlying structural problems which allow sky-high remuneration in the financial sector to continue unabated.

Samira Shackle is a freelance journalist, who tweets @samirashackle. She was formerly a staff writer for the New Statesman.

Getty
Show Hide image

Beware, hard Brexiteers - Ruth Davidson is coming for you

The Scottish Conservative leader is well-positioned to fight. 

Wanted: Charismatic leader with working-class roots and a populist touch who can take on the Brexiteers, including some in the government, and do so convincingly.

Enter Ruth Davidson. 

While many Tory MPs quietly share her opposition to a hard Brexit, those who dare to be loud tend to be backbenchers like Anna Soubry and Nicky Morgan. 

By contrast, the Scottish Conservative leader already has huge credibility for rebuilding her party north of the border. Her appearances in the last days of the EU referendum campaign made her a star in the south as well. And she has no qualms about making a joke at Boris Johnson’s expense

Speaking at the Institute of Directors on Monday, Davidson said Brexiteers like Nigel Farage should stop “needling” European leaders.

“I say to the Ukip politicians, when they chuckle and bray about the result in June, grow up,” she declared. “Let us show a bit more respect for these European neighbours and allies.”

Davidson is particularly concerned that Brexiteers underestimate the deeply emotional and political response of other EU nations. 

The negotiations will be 27 to 1, she pointed out: “I would suggest that macho, beer swilling, posturing at the golf club bar isn’t going to get us anywhere.”

At a time when free trade is increasingly a dirty word, Davidson is also striking in her defence of the single market. As a child, she recalls, every plate of food on the table was there because her father, a self-made businessman, had "made stuff and sold it abroad". 

She attacked the Daily Mail for its front cover branding the judges who ruled against the government’s bid to trigger Article 50 “enemies of the people”. 

When the headline was published, Theresa May and Cabinet ministers stressed the freedom of the press. By contrast, Davidson, a former journalist, said that to undermine “the guardians of our democracy” in this way was “an utter disgrace”. 

Davidson might have chosen Ukip and the Daily Mail to skewer, but her attacks could apply to certain Brexiteers in her party as well. 

When The Staggers enquired whether this included the Italy-baiting Foreign Secretary Johnson, she launched a somewhat muted defence.

Saying she was “surprised by the way Boris has taken to the job”, she added: “To be honest, when you have got such a big thing happening and when you have a team in place that has been doing the preparatory work, it doesn’t make sense to reshuffle the benches."

Nevertheless, despite her outsider role, the team matters to Davidson. Part of her electoral success in Scotland is down the way she has capitalised on the anti-independence feeling after the Scottish referendum. If the UK heads for a hard Brexit, she too will have to fend off accusations that her party is the party of division. 

Indeed, for all her jibes at the Brexiteers, Davidson has a serious message. Since the EU referendum, she is “beginning to see embryos of where Scotland has gone post-referendum”. And, she warned: “I do not think we want that division.”

 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.