Page last updated at 01:06 GMT, Saturday, 9 May 2009 02:06 UK

Goodwin title strip 'considered'

Sir Fred Goodwin
Sir Fred stepped down after RBS had to be bailed out by the government

Honours watchdog the Forfeiture Committee is to consider whether it should act to strip former RBS boss Sir Fred Goodwin of his knighthood.

Sir Fred took early retirement from RBS last year after the bank needed a £20bn bailout from the government.

Some Labour MPs called for the former chief executive to lose his title.

But Cabinet Secretary Sir Gus O'Donnell said the watchdog usually responded to judgements by the courts or relevant regulatory or professional bodies.

There has been widespread public and political anger over Sir Fred's pension payout, worth about £700,000 a year.

Sir Fred was knighted for services to banking in 2004.

Labour backbencher Gordon Prentice said: "Sir Fred was the central figure in the collapse of a major Scottish institution.

"In these circumstances, retaining a knighthood awarded 'for services to banking' strikes me as bizarre."


In a letter to Mr Prentice, Sir Gus said: "I will, of course, put the points you have made to the Forfeiture Committee, which will look at them against the background I have sketched out above and decide whether any action on its part is appropriate."

He wrote that the committee did "not have a role in supervising or monitoring the subsequent activities of all those who have been granted honours by the state".

"Its role is rather to consider cases for forfeiture in the light of evidence put to it and relevant precedents.

"The normal sources of such evidence are judgments by the courts or by the appropriate regulatory or other professional bodies."

Previous cases had involved a "clear determination of guilt by the appropriate regulatory, judicial or other competent authority on the basis of evidence put to it", Sir Gus wrote.

"The Forfeiture Committee then decided whether the individual's honour should be forfeited. The committee is not normally involved prior to any findings by the appropriate authorities."

Print Sponsor

RBS warns of 'tough' times ahead
08 May 09 |  Business
Why does everyone hate Fred the Shred?
05 Mar 09 |  Magazine
Harman in Sir Fred honour gaffe
04 Mar 09 |  UK Politics
Goodwin's pension hits 703,000
03 Mar 09 |  Business
Call to strip title from Sir Fred
28 Feb 09 |  Glasgow, Lanarkshire and West
Profile: Sir Fred Goodwin
26 Feb 09 |  Business

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2017 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific