Skip to main content

Fred Goodwin's Alleged Secret Lover Had Nothing To Do With RBS's Near-Burning To The Ground

  • Author:
  • Updated:

To those who think the woman- an RBS staffer who was promoted twice while she was (maybe) having an affair with Goodwin- "impaired" his "decision-making capacity," which ultimately resulted in the bank having 82% of its ass owned by the government, think again! An internal investigation has concluded that 1) the woman was no more of a distraction than a hobby 2) he didn't empower her to make any "big" decisions and 3) Goodwin was fully capable of running RBS into the ground without anyone else's help, thankyouverymuch.

The Royal Bank of Scotland employee at the centre of an alleged affair with Sir Fred Goodwin, its former chief executive, played no part in important strategic decisions at the bank, according to an internal investigation. People familiar with the probe said it focused on whether the employee, who remains at the bank, was involved in any key decision-making work, such as the bank’s acquisition of ABN Amro, judging credit risk, assessing regulatory issues or conducting internal audits. “We have only known about this for several weeks, and as soon as we did know we conducted an investigation,” said one person familiar with the process. “We are satisfied the employee in question did not compromise the bank in any way.”

[A] person with knowledge of the internal investigation said it was “slightly ludicrous” to suggest that Sir Fred’s decision-making capacity had been impaired by an extramarital affair. “There is no suggestion that he spent day after day locked away in a secret bolt-hole,” he said. “He went on holidays, he had hobbies. This was comparable.”


Layoffs Watch '12: RBS

Like Bank of America, RBS has some big goals for the coming year, chief among them being the firing of several thousand investment bankers. (For those skeptical they can do it, according to a PowerPoint presentation presented yesterday, re: the "exits," quite a bit of progress has already been made.) Royal Bank of Scotland, Britain’s biggest government-owned lender, said it will cut 300 more jobs at its investment banking unit and is “on track” with its plan to exit businesses. RBS will eliminate 3,800 jobs at the division by the fourth quarter of next year, compared with an earlier target of 3,500, according to slides based on a presentation delivered by John Hourican, chief of markets and international banking, to analysts Monday. About 3,000 of the cuts will have completed this year, RBS said...The bank’s control of costs is “ongoing,” said Chris Kyle, chief financial officer of markets and international banking, at the presentation. “We will almost certainly hit this year’s number” in terms of the guidance, he said. Royal Bank Of Scotland Cuts 300 More Jobs At Investment Bank [Bloomberg] RBS Markets Investor Roundtable [RBS]