Mortgage News
Goodwin criticism redacted from FSA report
A reference to RBS chief executive Sir Fred Goodwin having insufficient experience to run an international bank was removed from the FSA’s official report into the bank’s near collapse, it has been revealed.
A direct criticism of Goodwin was cut after a final draft of the report was shown to the former banking boss’s lawyers, an independent expert appointed to review the FSA inquiry told MPs.
However, lawyer Bill Knight told the Commons Treasury Committee the change was “fair”, as the criticism amounted to a charge of incompetence for which no evidence was provided in last month’s report.
Knight and former banker Sir David Walker were pressed by the Commons Treasury Committee yesterday over whether the FSA report amounted to censure.
The Honours Forfeiture Committee is currently considering whether to recommend that the Queen should strip Goodwin of his knighthood.
Former Morgan Stanley chairman Walker stressed the FSA report contained nothing that would expose Goodwin to legal charges in relation to RBS’s ill-fated decision in 2007 to buy ABN Amro, which eventually forced the bank to seek a state bailout.
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But he told the Treasury Committee that the FSA’s findings amounted to “censure”.