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LIVE: Bankers grilled by MPs LIVE: Bankers grilled by MPs
(10 minutes later)
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Former bankers give evidence to the Treasury Select CommitteeFormer bankers give evidence to the Treasury Select Committee
By Brian Wheeler 1009 They are asked by committee chairman John McFall on whether they lived up to the definition of a bank that they are responsible for the safekeeping of people's money. After a lot of talking around the subject, Mr McFall decides they did not. By Brian Wheeler 1019 "Sorry is just not good enough, give the bonuses back. We should not reward failure." Walter Biggin, Perthshire
1018 "These bankers have at least said 'sorry' for the collapse of the global economy. Well, that's all OK then..." Steve Fouch, Medway
1016 From BBC Political Editor Nick Robinson: A split has emerged. A white faced, nervy looking Andy Hornby - the former chief exec of HBOS - said in a quivering voice that bonuses were "not rewarding the right type of behaviour". He defended himself by saying that he'd not taken his bonus in cash but in shares and had lost more in those than he gained in money. Sir Fred Goodwin who told us simply that he was paid £1.6 billion last year was not really challenged on this issue. The bankers should feel that they've escaped pretty easily on this.
1014 From BBC Political Editor Nick Robinson: The scripted apologies are over. The first sign of frustration from MPs followed when the witnesses struggled to answer the straight question from the Treasury Committee Chairman. Had their banks lived up to the definition of a bank ie an institution that safeguarded customer's money? Their answers ranged from "er" to "mmm" to "we did not forsee with enough clarity…."
1011 Lord Stevenson, former HBOS chairman, says he can "understand why" people are concerned about short-term cash bonuses. Former RBS chairman Tom McKillop says current events should prompt a review of bonus policy across the board - but it cannot be carried out in a "piecemeal way".
1010 "I've worked for RBS for 26 years, Fred turned us from an admired institution to a laughing stock." Anonymous, London
1010 Bonuses now. Sir Fred Goodwin - "Fred the shred" as he is known by many newspapers - says he did not take a bonus in 2008. He says he and his colleagues have made considerable losses in the past year as they, like Andy Hornby formerly of HBOS, had invested their bonuses in bank shares. Mr Hornby criticises bonuses for short term performance, saying annual cash bonuses should be tied into longer term share performance, perhaps two or three years.
1009 They are asked by committee chairman John McFall on whether they lived up to the definition of a bank that they are responsible for the safekeeping of people's money. After a lot of talking around the subject, Mr McFall decides they did not.
1006 From BBC Political Editor Nick Robinson: So "sorry" isn't the hardest word. Each of the former bankers in turn have, predictably enough, said sorry. Each claimed that they had apologised before already - although that was to shareholders and not the public. Interesting that Lord Stevenson - the most political of the bunch - anticipated what will surely be another line of questioning on whether they've gained whilst we've suffered the pain by saying that "our shareholders - all of us - have lost a great deal of money".1006 From BBC Political Editor Nick Robinson: So "sorry" isn't the hardest word. Each of the former bankers in turn have, predictably enough, said sorry. Each claimed that they had apologised before already - although that was to shareholders and not the public. Interesting that Lord Stevenson - the most political of the bunch - anticipated what will surely be another line of questioning on whether they've gained whilst we've suffered the pain by saying that "our shareholders - all of us - have lost a great deal of money".
1003 Sir Fred Goodwin says they did not get the scale and speed of the downturn. Everyone thought it was going to turn "at some point" but everyone was taken by surprise by the speed of it, he tells the MPs.1003 Sir Fred Goodwin says they did not get the scale and speed of the downturn. Everyone thought it was going to turn "at some point" but everyone was taken by surprise by the speed of it, he tells the MPs.
1002 Did they think low interest rates and favourable economic conditions would last forever. Lord Stevenson chooses his words carefully. He did not "slavishly worship at that doctrine". Three years ago HBOS decided to lower their share of the housing market out of caution. But, he adds, the prevailing view was "bound to have an influence on us."1002 Did they think low interest rates and favourable economic conditions would last forever. Lord Stevenson chooses his words carefully. He did not "slavishly worship at that doctrine". Three years ago HBOS decided to lower their share of the housing market out of caution. But, he adds, the prevailing view was "bound to have an influence on us."
0958 This is starting to look like a show trial. All four men have now offered sincere apologies. Former RBS chief Sir Fred "Goodwin said he wanted to offer a "profound and unqualified apology for all the distress that's been caused."0958 This is starting to look like a show trial. All four men have now offered sincere apologies. Former RBS chief Sir Fred "Goodwin said he wanted to offer a "profound and unqualified apology for all the distress that's been caused."
0956 We're off. Lord Stevenson is first to be given the opportunity to apologise by committee chairman John McFall. He says: "We are profoundly and I think unreservedly sorry at the turn of events."0956 We're off. Lord Stevenson is first to be given the opportunity to apologise by committee chairman John McFall. He says: "We are profoundly and I think unreservedly sorry at the turn of events."
0954 "I would ask whether they're sick of being made scapegoats for an entire nation's folly and addiction to debt." Pete, Cheshire0954 "I would ask whether they're sick of being made scapegoats for an entire nation's folly and addiction to debt." Pete, Cheshire
0952 The four men - former HBOS chief executive Andy Horny, his former chairman Lord Stevenson, former RBS CEO Sir Fred Goodwin and his former chairman Sir Tom McKillop - have just filed into the Thatcher Room to face the panel of MPs. They are swapping small talk and pouring each other glasses of water. We should be under way any second now.0952 The four men - former HBOS chief executive Andy Horny, his former chairman Lord Stevenson, former RBS CEO Sir Fred Goodwin and his former chairman Sir Tom McKillop - have just filed into the Thatcher Room to face the panel of MPs. They are swapping small talk and pouring each other glasses of water. We should be under way any second now.
0948 "They should all be stripped of their knighthoods and made to pay back all bonuses paid to them during the period in question." Robert Taylor, London0948 "They should all be stripped of their knighthoods and made to pay back all bonuses paid to them during the period in question." Robert Taylor, London
0946 Committee chairman, Labour MP John McFall, told the BBC News Channel he wants to find out "what went wrong" and how these "once proud institutions have been brought to their knees and what lessons we can learn for the future." He is also expected to quiz them about how they justify their bonuses.0946 Committee chairman, Labour MP John McFall, told the BBC News Channel he wants to find out "what went wrong" and how these "once proud institutions have been brought to their knees and what lessons we can learn for the future." He is also expected to quiz them about how they justify their bonuses.
0935 Welcome to our live text coverage of the Treasury Select Committee. This morning, the four men who presided over the rise and spectacular fall of two of Britain's biggest banks will be questioned for two hours or more on their role in Britain's financial crisis. The four - until recently senior executives at the Royal Bank of Scotland and HBOS - will face a panel of senior MPs in the Thatcher Room at Westminster's Protcullis House. The session is due to start at about 0945.0935 Welcome to our live text coverage of the Treasury Select Committee. This morning, the four men who presided over the rise and spectacular fall of two of Britain's biggest banks will be questioned for two hours or more on their role in Britain's financial crisis. The four - until recently senior executives at the Royal Bank of Scotland and HBOS - will face a panel of senior MPs in the Thatcher Room at Westminster's Protcullis House. The session is due to start at about 0945.