Sunday 22 May 2011

Sir Fred Goodwin's mistress promoted twice when he was RBS boss

SHAMED banker Sir Fred Goodwin's high-flying lover was promoted twice while he was Royal Bank of Scotland boss.
The married dad-oftwo had an affair with a senior colleague as the bank lurched towards financial disaster and a £45.5billion bailout funded by taxpayers.
Politicians have called for an urgent probe into whether the relationship breached business guidelines after Goodwin used a gagging order to try to stop details of the affair being published.
Lib Dem MP John Hemming, who revealed Goodwin's injunction to the House of Commons in March, said: "The question about Fred Goodwin's management of RBS is whether it was managed in the stakeholders' interests or run as a personal fiefdom.
"That his mistress was promoted twice while he was chief executive is something the Financial Services Authority need to look at."
Lib Dem peer Lord Oakeshott used the right of parliamentary privilege to reveal more details of the gagging order on Thursday.
Later that day, Mr Justice Tugendhat, in the High Court, allowed reporting of Goodwin's name but not of relationship details.
The FSA said: "We have contacted RBS in relation to this matter."
RBS said they will "co-operate fully".