Fred the Shred’s still smiling 10 years on
10 years on from crash, ex-RBS boss lives high life But millions of ordinary people are £23K worse off
WITH millions of people still suffering the after-effects of the devastating financial crash 10 years on, smug Fred “The Shred” Goodwin clearly has no such worries.
The former Royal Bank of Scotland boss was pictured smirking in one of his classic cars – and he has plenty to smile about after it emerged his pension pot is worth £17million.
He has already raked in £6million since quitting in disgrace a decade ago, with a £2.8million lump sum.
But it is a very different story for the millions of ordinary households who are on average £23,400 a year worse off thanks to the crash that Goodwin and other gambling bankers caused.
And he seems to be showing little remorse over the 90,000
It is the height of unfairness. No wonder he is grinning from ear to ear 10 years later. DAVID HILLMAN DIRECTOR ROBIN HOOD TAX CAMPAIGN
RBS jobs lost or the billions of pounds forked out by taxpayers to rescue his doomed bank.
His clear disregard for those left trailing in the wake of the devastating financial disaster as he enjoys a £450,000 a year pension last night sparked fury.
Robin Hood Tax campaign director David Hillman said: “Goodwin symbolises the height of unfairness.
“After driving his bank into the ground, he walked off with a golden handshake.
“No wonder he’s still grinning from ear to ear 10 years later.”
Goodwin was pictured by the Mirror behind the wheel of his £12,000 rare 1988 BMW 635CSi with the apt plate 666 – the number of the beast in the Bible.
Wearing shades, he drove off from his large house in Edinburgh’s plush Grange area.
The BMW is believed to be one of a number of classic cars he owns. He has also been seen driving a convertible Triumph Stag to play 18-hole golf at his golf course at Archerfield in East Lothian, with fees of £30,000.
The crash happened after Wall Street giant Lehman Brothers dramatically collapsed, sending the world’s financial system into meltdown.
Britain’s big banks were plunged into chaos by the subsequent credit crunch, leading to a £130billion bailout.
RBS, which had morphed into the world’s biggest bank through a wave of questionable takeovers, was rescued from the brink of collapse the following month. For those at the wrong end of the financial scale, the crash caused nothing but misery as the Government dipped into the public purse to save the banks.
Crippling austerity has unleashed anguish on millions of the poorest. And yet no senior banker has been jailed in the UK for the scandal. For many, Goodwin
personifies those who profited from the boom times before the crash and walked away from the mess scot-free. During his eight years in charge, the former accountant turned RBS into the world’s biggest bank by assets, a £64billion global Goliath with 200,000 staff. Insiders claim after he was named as Forbes’ Businessman of the Year in 2002 it instilled a “supreme arrogance” in him. One source said he believed he could “walk on water” and added: “He was seen as some kind of banking demigod.”
Critics say Goodwin’s reign was marked by reckless lending and a series of takeovers, including NatWest and the disastrous acquisition of Dutch bank ABN Ambro in 2007.
It is claimed RBS paid over the odds and failed to carry out sufficient checks.
The bank lavished profits on luxuries such as an £18million company jet and a permanent suite at London hotel The Savoy costing £700,000 a year. But
despite the carnage left behind by the RBS, Goodwin insists he has done nothing wrong.
Author Ian Fraser said: “Despite the fact he has been ostracised by the public, he has been accepted by elements of the Scottish establishment.
“But then, Fred would expect nothing else. Perhaps the most shocking aspect of the RBS story is that he remains unrepentant and defiant.
“He still believes he wasn’t responsible and blames others. His lack of remorse and humility has been a common trait throughout this whole affair.”
An acquaintance of Goodwin’s disagreed, insisting: “He felt deeply wounded by what people said.”
In 2012, Goodwin was stripped of his knighthood, which had been handed to him by Tony Blair.
He was also reportedly turfed out of the family home by wife Joyce after she discovered he was having an affair with a colleague. The couple, who have two children, divorced in 2016. The Financial Services Authority, cleared Goodwin of any wrongdoing over the collapse of RBS. But he is being sued for up to £3billion by Taiwanese shipping magnate Nobu Su, the billionaire chairman of Today Makes Tomorrow. He accuses Goodwin, along with two former colleagues and the bank, of “hijacking” TMT’s accounts and using them as “unlimited cash machines”. It is believed to be one of the biggest lawsuits ever against a UK individual.
As Goodwin continues his high life today, Shadow Chancellor John McDonnell is due to address a rally organised by the coalition 10 Years On outside the Bank of England.
He will say: “One of the key lessons to be learnt from the crash is that never again must we allow finance to become the master of the economy, rather than its servant.”
A campaigning pensioner is fighting for thousands of people who lost money in the fall of Northern Rock.
Dennis Grainger, 72, said the Government is making £9.6billion profit on the £37billion used to bail out the Newcastle-based bank.
But he added: “They are saying that is going to keep the profits to offset the losses they made on RBS and other banks.”