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Mr Fred Goodwin loses his knighthood


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tbh the episode shows up two, or possibly three things.

 

Firstly how stupid the honours system is. He could have been the most morally corrupt person on the planet and the system would still have honoured him just for being a top banker. In the same way that top civil servants automatically gain a title, no matter how inept they turn out to be (Dame Strathie).

 

Secondly the cronyism that means both jobs for the boys and titles for the boys. Politicians of all persuasions will hand out baubles to their chums.

 

Thirdly....Sir Fred was part of a board. He was part of an organisation. He personally wasn't to blame, it was the culture of risk and bonus - a culture that continues today and a culture that the politicians blather about ending but are either unwilling, or unable to do anything serious about.

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He made a series of acquisitions turning RBS from a small bit-part player into one of the largest banks in the world.

 

Everyone thought it was a brilliant strategy, and everyone wanted to pile as much money in as possible, until one of the acquisitions went wrong and bankrupted the company, at which point everyone has decided that he personally is to blame for the whole fiasco.

 

 

I believe it was Fred Goodwin's personal insistence that due diligence on ABN-AMRO, amounted to 'two lever-arch files and a CD ROM' for a disastrous £49billion deal. Oh, and lets not forget how much he leveraged RBS to aswell.

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I believe it was Fred Goodwin's personal insistence that due diligence on ABN-AMRO, amounted to 'two lever-arch files and a CD ROM' for a disastrous £49billion deal. Oh, and lets not forget how much he leveraged RBS to aswell.

 

It may have been his personal insistence but a properly constituted board of directors, with non-executive directors to oversee, should have questioned him and diligently examined his plans before signing off on them.

 

That is after all what they are paid £800,000 a year for a 2 day week for.

 

Or what it's more commonly known as "money for old rope".

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It may have been his personal insistence but a properly constituted board of directors, with non-executive directors to oversee, should have questioned him and diligently examined his plans before signing off on them.

 

That is after all what they are paid £800,000 a year for a 2 day week for.

 

Or what it's more commonly known as "money for old rope".

 

True enough, but with a bullying personality like Goodwin in charge the composition of the board inevitably tends towards cronies and yes men. He was a ruthless CEO who fired anyone who crossed him and let his own ego run riot on the banks balance sheet with his endless aquisitions. If ever a CEO bore genuine personal responsibility for what happened to their company it's him.

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It does my heart good to see this.

He still has the money, fair enough.

But the people he admires and envies have kicked him in the face.

Non of them come out of it with any better standing.

They are all reduced by it.

The Queen espescially has been humiliated in her big year.

Being told by an unelected PM to remove an honour she gave on the advice of another unelected PM, to a good for nothing incompetent, does not make her look good.

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