This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/7880292.stm
The article has changed 23 times. There is an RSS feed of changes available.
| Version 9 | Version 10 |
|---|---|
| Former banking bosses say 'sorry' | Former banking bosses say 'sorry' |
| (20 minutes later) | |
| The former bosses of the two biggest UK casualties of the banking crisis have apologised "profoundly and unreservedly" for their banks' failure. | The former bosses of the two biggest UK casualties of the banking crisis have apologised "profoundly and unreservedly" for their banks' failure. |
| Former Royal Bank of Scotland chief executive Fred Goodwin told the Treasury Committee he "could not be more sorry" for what happened. | |
| They are being quizzed over the mistakes which led to the banks being bailed out by the government. | They are being quizzed over the mistakes which led to the banks being bailed out by the government. |
| The former bank chiefs also said the bonus culture needed to be reviewed. | |
| Under the terms of October's bank-bailout, no board directors at partly state-owned firms will receive any cash bonuses this year. | Under the terms of October's bank-bailout, no board directors at partly state-owned firms will receive any cash bonuses this year. |
| Sir Fred Goodwin, former chief executive of RBS, said that he took no bonus in 2008, but that his salary was £1.46m. | Sir Fred Goodwin, former chief executive of RBS, said that he took no bonus in 2008, but that his salary was £1.46m. |
| SIR FRED GOODWIN Former chief executive, RBS, 50Salary: £1.3m plus £2.9m performance bonus (2007)Born and raised in Paisley, near GlasgowResignation announced in October 2008 LIVE: Bankers grilled by MPs | SIR FRED GOODWIN Former chief executive, RBS, 50Salary: £1.3m plus £2.9m performance bonus (2007)Born and raised in Paisley, near GlasgowResignation announced in October 2008 LIVE: Bankers grilled by MPs |
| Andy Hornby, former chief executive of HBOS, said that he also took no bonus last year, and that he had never taken any bonus in the form of cash. | |
| "I have never received one single penny in cash bonus," he said, referring to his time not only as boss of HBOS but also his time on the board. | "I have never received one single penny in cash bonus," he said, referring to his time not only as boss of HBOS but also his time on the board. |
| Instead, he said, he had taken his bonuses in the form of shares. | Instead, he said, he had taken his bonuses in the form of shares. |
| "I have lost considerably more money than I have been paid," he said, referring to falls in the value of shares that he had been given by way of bonuses. | "I have lost considerably more money than I have been paid," he said, referring to falls in the value of shares that he had been given by way of bonuses. |
| But he did, however, concede that the culture of cash bonuses did need to be looked at. | |
| "The bonus system has proved to be wrong. Substantial cash bonuses do not reward the right kind of behaviour," he said. | |
| SIR TOM MCKILLOP Former chairman, Royal Bank of Scotland, 65Salary: £750,000 (2007)Resignation announced in October 2008 | |
| Sir Tom McKillop, former RBS chairman, agreed that a fundamental review of remuneration was needed. | |
| But when asked whether the bonus culture encouraged excessive risk taking and exacerbated the banking crisis, Sir Fred Goodwin argued that traders were trading within set limits, and were doing simply "what they were authorised to do". | |
| It is "hard to say that remuneration was a cause [of the bank's problems]," he said. | |
| Prime Minister Gordon Brown has expressed anger over proposed pay-outs to other workers and said he wanted employees to consider waiving their right to them. | Prime Minister Gordon Brown has expressed anger over proposed pay-outs to other workers and said he wanted employees to consider waiving their right to them. |
| Huge losses | Huge losses |
| Sir Fred and Sir Tom McKillop, who was chairman of RBS, are appearing before the Treasury Committee alongside Lord Stevenson, former chairman of Halifax Bank of Scotland, and Mr Hornby. | Sir Fred and Sir Tom McKillop, who was chairman of RBS, are appearing before the Treasury Committee alongside Lord Stevenson, former chairman of Halifax Bank of Scotland, and Mr Hornby. |
| ANDY HORNBY Former chief executive, HBOS, 42Salary: £1.93m, including bonus and benefits (2007) Joined HBOS from Asda in 1999Resignation announced in October 2008 | |
| Sir Fred oversaw a number of acquisitions that made Edinburgh-based RBS one of the world's biggest banks. | Sir Fred oversaw a number of acquisitions that made Edinburgh-based RBS one of the world's biggest banks. |
| But his takeover of Dutch rival ABN Amro late in 2007 is now seen as ill-timed and a deal too far in light of RBS's inability to survive the credit crunch without a massive injection of government funds. | But his takeover of Dutch rival ABN Amro late in 2007 is now seen as ill-timed and a deal too far in light of RBS's inability to survive the credit crunch without a massive injection of government funds. |
| Sir Tom admitted to the committee that the deal to buy ABN was "a big mistake". | Sir Tom admitted to the committee that the deal to buy ABN was "a big mistake". |
| "We bought it at the top of the market and anything we paid was an error. We are sorry we bought ABN Amro," he added. | "We bought it at the top of the market and anything we paid was an error. We are sorry we bought ABN Amro," he added. |
| RBS is now nearly 70%-owned by the taxpayer after a government rescue package was put in place at the end of last year. | RBS is now nearly 70%-owned by the taxpayer after a government rescue package was put in place at the end of last year. |
| Sir Tom stepped down earlier this month, two months earlier than planned. | Sir Tom stepped down earlier this month, two months earlier than planned. |
| A former boss of drugs giant AstraZeneca, he apologised to RBS shareholders last year for the bank's problems. | A former boss of drugs giant AstraZeneca, he apologised to RBS shareholders last year for the bank's problems. |
| No easy ride | No easy ride |
| HBOS was rescued by Lloyds and the merged group is now more than 40%-owned by the government. | HBOS was rescued by Lloyds and the merged group is now more than 40%-owned by the government. |
| LORD STEVENSON Former chairman HBOS Salary: £821,000 including benefits (2007)Resignation announced in October 2008 | |
| Mr Hornby stepped down from his post as head of HBOS after the takeover by Lloyds, although his position was already in doubt. He waived a big pay off when he left. | Mr Hornby stepped down from his post as head of HBOS after the takeover by Lloyds, although his position was already in doubt. He waived a big pay off when he left. |
| He joined Halifax from Asda in 1999, and is credited with bringing a retailer's dynamism to the more sedate world of banking. He became chief executive of the merged Bank of Scotland and Halifax in 2006. | He joined Halifax from Asda in 1999, and is credited with bringing a retailer's dynamism to the more sedate world of banking. He became chief executive of the merged Bank of Scotland and Halifax in 2006. |
| Lord Stevenson also stepped down after the Lloyds takeover and said he would not be taking any pay off. | Lord Stevenson also stepped down after the Lloyds takeover and said he would not be taking any pay off. |
| He joined Halifax as a director in 1999, becoming chairman in July the same year. After the merger with the Bank of Scotland, he became chairman of HBOS. | He joined Halifax as a director in 1999, becoming chairman in July the same year. After the merger with the Bank of Scotland, he became chairman of HBOS. |
| The bosses still in place at the helm of Britain's leading banks will appear before the Treasury Committee on Wednesday. | The bosses still in place at the helm of Britain's leading banks will appear before the Treasury Committee on Wednesday. |
| The BBC's chief economics correspondent Hugh Pym said committees rarely offered an easy ride and it was hard to see the banking chiefs having a comfortable time. | The BBC's chief economics correspondent Hugh Pym said committees rarely offered an easy ride and it was hard to see the banking chiefs having a comfortable time. |