This past week the British government stripped former RBS CEO Fred Goodwin of his knighthood.
More than anyone alive, the man once known as Sir Fred, came to be associated with the reckless corporate spending of Labour’s boom years, and the greed, vanity and hubris that accompanied them. Fred Goodwin has been the poster child of the 2008 financial crash in the UK and the politicians exploited the people's sentiments by stripping him of the title he was given in 2004. Personally, I think this is one of the lowest points for the British, and a mockery of our intelligence.
There were many other guilty people, not excluding some leading ministers, who have yet to accept responsibility for the decisions that led to the fall of British banking and its economy. Fred Goodwin is an easy target and many of my British friends seem to be satisfied that the government has acted justly in stripping him of his title. Human nature is fascinating, we love a good lynching when things go wrong instead of addressing the true causes of our problems.
I had the honor of working with Fred Goodwin's team between 2000 and 2005. I do not know the man personally and I am not arguing the fact he made a number of bad decisions that led to the fall of RBS. But the vilification of this one-time Forbes Man of the Year by the British media and state is truly disgusting in my view. Goodwin's accomplishments between 2000 and 2007 cannot be argued, and while the man is far from perfect, the charade of scapegoating him for the past 4 years is a rare glimpse into the ugly side of British politics and society.
Many of you will disagree with my views here and thats okay. We can agree to disagree. But consider my arguments for a moment. We live in a society based on a system of law, the UK being an example of a democratic free society. The Financial Services Authority (FSA) attempted to bring charges to Goodwin in 2009 and 2010 but could not find any legal basis, instead concluding that RBS is to blame for ‘multiple poor decisions’ during his stewardship, highlighting its £50billion bid for Dutch bank ABN Ambro in 2007 as an irresponsible ‘gamble’.
Having some insight into those decisions from my time as an advisor to RBS, I agree Sir Fred's biggest mistake was to overpay for a poor performing bank with substantial toxic assets in the US mortgage industry. RBS pre-ABN Ambro did not have the exposure to these risky assets that ultimately brought the house down. I recall a time the Bank was posting profits of £10billion a quarter, and creating over 100,000 jobs from the time Goodwin took over the small Scottish bank and turned it into the 7th largest financial services group in the world. No complaints during those times of performance.
Unlike the bankers and hedge fund managers that have been tried and found guilty of breaking the law for personal gain, Goodwin doesn't fall into the category of thief, cheat or criminal. Arrogant, yes. Ruthless, definitely. But criminal, no. Yet the media and politicians have pressed ahead, forcing him to give back 33% of his pension, and now stripping him of his knighthood in an attempt to shame the man and his family. Vindictive behavior that accomplishes nothing other than satisfying the ugliness of British society in my view, and setting a very dangerous precedent for business leaders in that country.
In the wake of the Queen’s removal of his knighthood on the recommendation of Whitehall’s obscure Forfeiture Committee, many have tried to justify the government's actions, especially given there have been no criminal charges against Fred Goodwin. Many have sited precedents for taking away honours from people who have not been behind bars, such as Jean Else, a teacher stripped of her damehood in 2011, or Zimbabwean tyrant Robert Mugabe, undoubtedly guilty of heinous crimes, but never prosecuted. But these examples are not good ones.
Under Goodwin's leadership the once prudent RBS embarked on a frenzy of reckless lending and crazy acquisitions which left the bank perilously short of capital when the bubble burst. It was bailed out at a cost to the taxpayer of £45billion. For this he lost his job and the financial penalties that go with that, and his reputation as a business leader left in ruins. Legally and ethically it should end there, but four years later we are still pressing ahead with hurting the man and his family anyway we can, short of hanging him in the town square.
My issue with this is the message we are giving to business leaders, entrepreneurs and anyone who is willing to take the risk of creating a business. It used to be that if you made a mistake in business you would lose financially and reputationally. Now we are saying if you f*ck up we will ostracize you and your family, take away any wealth you may have legally earned in the past, and strip you of your basic human rights to privacy, safety and existence. Fortunately for Fred Goodwin, the man, they have misjudged just how tough this SOB is. He will never bow to society's hatred no matter how hard they come at him.
To me, this is a low point for the British people and another example of how villainous their government and media can be. History is riddled with the meddling of the British, causing some of the biggest catastrophe's of our world, including the current siutations in Palestine and Iran, to name just two. As an admirer of all the accomplishments and history of Britain, this past week has been shameful.
More than anyone alive, the man once known as Sir Fred, came to be associated with the reckless corporate spending of Labour’s boom years, and the greed, vanity and hubris that accompanied them. Fred Goodwin has been the poster child of the 2008 financial crash in the UK and the politicians exploited the people's sentiments by stripping him of the title he was given in 2004. Personally, I think this is one of the lowest points for the British, and a mockery of our intelligence.
There were many other guilty people, not excluding some leading ministers, who have yet to accept responsibility for the decisions that led to the fall of British banking and its economy. Fred Goodwin is an easy target and many of my British friends seem to be satisfied that the government has acted justly in stripping him of his title. Human nature is fascinating, we love a good lynching when things go wrong instead of addressing the true causes of our problems.
I had the honor of working with Fred Goodwin's team between 2000 and 2005. I do not know the man personally and I am not arguing the fact he made a number of bad decisions that led to the fall of RBS. But the vilification of this one-time Forbes Man of the Year by the British media and state is truly disgusting in my view. Goodwin's accomplishments between 2000 and 2007 cannot be argued, and while the man is far from perfect, the charade of scapegoating him for the past 4 years is a rare glimpse into the ugly side of British politics and society.
Many of you will disagree with my views here and thats okay. We can agree to disagree. But consider my arguments for a moment. We live in a society based on a system of law, the UK being an example of a democratic free society. The Financial Services Authority (FSA) attempted to bring charges to Goodwin in 2009 and 2010 but could not find any legal basis, instead concluding that RBS is to blame for ‘multiple poor decisions’ during his stewardship, highlighting its £50billion bid for Dutch bank ABN Ambro in 2007 as an irresponsible ‘gamble’.
Having some insight into those decisions from my time as an advisor to RBS, I agree Sir Fred's biggest mistake was to overpay for a poor performing bank with substantial toxic assets in the US mortgage industry. RBS pre-ABN Ambro did not have the exposure to these risky assets that ultimately brought the house down. I recall a time the Bank was posting profits of £10billion a quarter, and creating over 100,000 jobs from the time Goodwin took over the small Scottish bank and turned it into the 7th largest financial services group in the world. No complaints during those times of performance.
Unlike the bankers and hedge fund managers that have been tried and found guilty of breaking the law for personal gain, Goodwin doesn't fall into the category of thief, cheat or criminal. Arrogant, yes. Ruthless, definitely. But criminal, no. Yet the media and politicians have pressed ahead, forcing him to give back 33% of his pension, and now stripping him of his knighthood in an attempt to shame the man and his family. Vindictive behavior that accomplishes nothing other than satisfying the ugliness of British society in my view, and setting a very dangerous precedent for business leaders in that country.
In the wake of the Queen’s removal of his knighthood on the recommendation of Whitehall’s obscure Forfeiture Committee, many have tried to justify the government's actions, especially given there have been no criminal charges against Fred Goodwin. Many have sited precedents for taking away honours from people who have not been behind bars, such as Jean Else, a teacher stripped of her damehood in 2011, or Zimbabwean tyrant Robert Mugabe, undoubtedly guilty of heinous crimes, but never prosecuted. But these examples are not good ones.
Under Goodwin's leadership the once prudent RBS embarked on a frenzy of reckless lending and crazy acquisitions which left the bank perilously short of capital when the bubble burst. It was bailed out at a cost to the taxpayer of £45billion. For this he lost his job and the financial penalties that go with that, and his reputation as a business leader left in ruins. Legally and ethically it should end there, but four years later we are still pressing ahead with hurting the man and his family anyway we can, short of hanging him in the town square.
My issue with this is the message we are giving to business leaders, entrepreneurs and anyone who is willing to take the risk of creating a business. It used to be that if you made a mistake in business you would lose financially and reputationally. Now we are saying if you f*ck up we will ostracize you and your family, take away any wealth you may have legally earned in the past, and strip you of your basic human rights to privacy, safety and existence. Fortunately for Fred Goodwin, the man, they have misjudged just how tough this SOB is. He will never bow to society's hatred no matter how hard they come at him.
To me, this is a low point for the British people and another example of how villainous their government and media can be. History is riddled with the meddling of the British, causing some of the biggest catastrophe's of our world, including the current siutations in Palestine and Iran, to name just two. As an admirer of all the accomplishments and history of Britain, this past week has been shameful.
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