Sir Fred

The row over Sir Fred Goodwin's pension continues to rage.

On Monday Lord Myners, the City Minister, was forced to respond to questions during a Lords debate on the economy over whether he had endorsed the specific sum of money to be paid. He denies knowing the exact figure at the time of Sir Fred's departure, but admitted he had learned of it shortly after. There are many who are questioning whether he should have been more proactive in questioning the nature of the pay-out.

Yesterday Glen Moreno, the acting chairman of UK Financial Investments - the body set up to manage government-owned stakes in part-nationalised banks - criticised RBS during questioning in the Commons Treasury Select Committee for enabling Sir Fred to receive a sum of £703, 000 a year by asking him to take early retirement when he would have only been entitled to £416, 000 a year if he had been sacked. John Kingman, the Chief Executive of UK Financial Investments, was also on the receiving end of some harsh words from John McFall, the Committee Chairman, for coming to the session unprepared to answer questions on the bonuses paid out to staff from other banks, despite the fact that he had been briefed that he would be asked such a question the previous Friday.

Today Harriet Harman made a gaffe during Prime Minister's Questions concerning the basis on which Sir Fred had received his Knighthood. This somes amid claims that it should be removed.

The Times has also reported today that Sir Fred is considering leaving the country for a few months until the situation cools down. There is much talk about legal action but it is quite obvious that nothing will come of it.

This latest saga demonstrates the attitude towards bankers that has been commented on in an earlier blog post, and which was summarised so brilliantly by Boris:

'Sir Fred has become the epitome of the bankers who collectively occupy a place in public opinion significantly lower than cannibalistic paedophile global-warming deniers' (Yesterday).