Breaking news on BBC - Fred Goodwin refuses reduced pension

chewmylegoff

Optimist wrote: »

Thin end of the wedge there !

This government would put a clause in that and call it take everybody's pension to help the economy act

well i don't really agree, it would only be the thin end of the wedge with respect to the pensions of ex-CEOs of banks which have been nationalised recently after incurring huge losses and saddling the tax payer with mass liabilities.

chewmylegoff

MrFonzerelli wrote: »

It would set a precedent, they know that once the anger towards Fred has settled, it could be their pension next.

Alternatively they could succeed in putting all the blame on Fred, thus somewhat absolving their own part in this symbolical episode, whist appearing strong.

It's a difficult call to make...

re: your first point, it would be fine as MPs vote on their own pension and salary entitlements. they'll never be eroded!

icefall

Poor Mr Goodwin needs his £13,000 per week to live on remember. He is 50, he would have difficulty getting another job now. Especially with that now chequered past job history..

Never mind all the other 50 yr olds who have had to live on £13,000 a year (not a week btw) and have no pension pot to speak of...

GeorgeHowell

This is not about vigilante attitudes or mob rule.

Any other company than a major bank would have gone bust in RBS's position. In which case its pension liabilities would have been passed to the Pension Compansation Fund, and Goodwin would have got just a tiny fraction of what he is getting now. The reason that RBS did not go bust is that HMG considered the wider national interest too important to let that happen. However there is s till a case to be made that pensions should not be protected 100% courtesy of the taxpayer. It probably requires an Act of Parliament to address this. It should be done without delay, with cross party support, and be enacted retrospectively.

Graham_Devon

chambta wrote: »

I really hope that is not true.

Confirmation RBS are paying for his security including CCTV and security staff at his home.

http://news.bbc.co.uk/1/hi/scotland/7917705.stm

alared

This is all about diverting attention from the real culprit who let the whole mess happen

---

Brown the Clown.

Andy_L

GeorgeHowell wrote: »

This is not about vigilante attitudes or mob rule.

Any other company than a major bank would have gone bust in RBS's position. In which case its pension liabilities would have been passed to the Pension Compansation Fund, and Goodwin would have got just a tiny fraction of what he is getting now.

Only if the scheme was underfunded.

MrFonzerelli

chewmylegoff wrote: »

re: your first point, it would be fine as MPs vote on their own pension and salary entitlements. they'll never be eroded!

Not unless at the end of a sharp sword of media interest.
However I was talking about public anger.

Old_Slaphead

Andy_L wrote: »

Only if the scheme was underfunded.

Anyone know state of funding on RBS Pension Scheme?

chewmylegoff

Old_Slaphead wrote: »

Anyone know state of funding on RBS Pension Scheme?

i'm guessing, but i wouldn't be surprised to find that the RBS directors' scheme is funded by a letter from RBS which states "we will make whatever payments are necessary".