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| Version 9 | Version 10 |
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| Goodwin pension stance condemned | Goodwin pension stance condemned |
| (about 2 hours later) | |
| The Treasury has said that banker Sir Fred Goodwin's refusal to give up his £693,000-a-year pension is "unfortunate and unacceptable". | |
| Chancellor Alistair Darling had asked him to hand back his £16m pension pot amid anger about rewards for failure. | Chancellor Alistair Darling had asked him to hand back his £16m pension pot amid anger about rewards for failure. |
| But the ex-RBS boss rejected this in a letter to the Treasury in which he says ministers agreed to the pension deal. | But the ex-RBS boss rejected this in a letter to the Treasury in which he says ministers agreed to the pension deal. |
| In response, city minister Lord Myners said he was not aware at that time that this deal could later be altered. | In response, city minister Lord Myners said he was not aware at that time that this deal could later be altered. |
| The BBC's Political Editor Nick Robinson said any failure to persuade Sir Fred Goodwin to alter the terms of his pension payout would be politically damaging given the government pledge to crack down on City excesses. | The BBC's Political Editor Nick Robinson said any failure to persuade Sir Fred Goodwin to alter the terms of his pension payout would be politically damaging given the government pledge to crack down on City excesses. |
| 'Gestures made' | 'Gestures made' |
| The pension row intensified after RBS revealed it had made a £24bn loss last year, the single largest in British corporate history, and would receive a further £13bn from the government. | The pension row intensified after RBS revealed it had made a £24bn loss last year, the single largest in British corporate history, and would receive a further £13bn from the government. |
| Mr Darling has asked Sir Fred, who has been widely blamed for helping to drive the bank to the brink of ruin and who stepped down as chief executive in November, to hand back some of the pension money. | Mr Darling has asked Sir Fred, who has been widely blamed for helping to drive the bank to the brink of ruin and who stepped down as chief executive in November, to hand back some of the pension money. |
| I hope that you understand my rationale for declining your request to voluntarily reduce my pension entitlement Sir Fred Goodwin Full text of Sir Fred's letterLord Myners' replyRobert Peston on the argumentRBS records record £24bn lossProfile: Sir Fred Goodwin | I hope that you understand my rationale for declining your request to voluntarily reduce my pension entitlement Sir Fred Goodwin Full text of Sir Fred's letterLord Myners' replyRobert Peston on the argumentRBS records record £24bn lossProfile: Sir Fred Goodwin |
| But in a letter to Lord Myners, Sir Fred rejects the chancellor's plea, saying: "I hope that you understand my rationale for declining your request to voluntarily reduce my pension entitlement". | But in a letter to Lord Myners, Sir Fred rejects the chancellor's plea, saying: "I hope that you understand my rationale for declining your request to voluntarily reduce my pension entitlement". |
| Sir Fred says he agreed to a series of "gestures" in October, when he was negotiating his departure from the bank, such as foregoing the equivalent of 15 months salary. | Sir Fred says he agreed to a series of "gestures" in October, when he was negotiating his departure from the bank, such as foregoing the equivalent of 15 months salary. |
| But when it came to the issue of his pension "you indicated that you were aware of my entitlement and that no further 'gestures' would be required", writes Sir Fred. | But when it came to the issue of his pension "you indicated that you were aware of my entitlement and that no further 'gestures' would be required", writes Sir Fred. |
| At the time he stood down Mr Darling had hailed the fact Sir Fred had waived his contractual entitlement and decided "to do the right thing". | At the time he stood down Mr Darling had hailed the fact Sir Fred had waived his contractual entitlement and decided "to do the right thing". |
| There was no mention of the size of pension he was going to receive. | There was no mention of the size of pension he was going to receive. |
| Mr Darling, who had asked Lord Myners to speak to Sir Fred about giving up his pension, said that the government had been under the impression in October that the pension deal was contractually binding. | Mr Darling, who had asked Lord Myners to speak to Sir Fred about giving up his pension, said that the government had been under the impression in October that the pension deal was contractually binding. |
| But in the past week it had realised that that was not the case and certain elements of it were discretionary and could later be altered by the RBS board. | But in the past week it had realised that that was not the case and certain elements of it were discretionary and could later be altered by the RBS board. |
| In a letter to Sir Fred, released by the government, Lord Myners said the discussions he had with the banker about the financial arrangements of his departure from RBS "did not amount to approval" of his pension payment. | In a letter to Sir Fred, released by the government, Lord Myners said the discussions he had with the banker about the financial arrangements of his departure from RBS "did not amount to approval" of his pension payment. |
| He added: "I do not agree with your rationale for declining my request that you voluntarily reduce your pension." | He added: "I do not agree with your rationale for declining my request that you voluntarily reduce your pension." |
| "And indeed I hope that on reflection you will now share my clear view that the losses reported today by the bank which you ran until October cannot justify such a huge reward." | "And indeed I hope that on reflection you will now share my clear view that the losses reported today by the bank which you ran until October cannot justify such a huge reward." |
| Mr Darling has said the government is investigating the possibility of "clawing back" some of the money, if necessary through legal action. | Mr Darling has said the government is investigating the possibility of "clawing back" some of the money, if necessary through legal action. |
| 'Obscene' | 'Obscene' |
| Earlier Prime Minister Gordon Brown "demanded action" on the issue, saying pension payments on such a scale could not be justified when the company was losing so much money and cutting thousands of jobs. | Earlier Prime Minister Gordon Brown "demanded action" on the issue, saying pension payments on such a scale could not be justified when the company was losing so much money and cutting thousands of jobs. |
| Shadow chancellor George Osborne described the pension agreement as "obscene" and said it would be "wrong" for Sir Fred to take the money. | Shadow chancellor George Osborne described the pension agreement as "obscene" and said it would be "wrong" for Sir Fred to take the money. |
| He also called on ministers to explain when they had known of his pension arrangement and why they had not acted earlier to do something about it. | He also called on ministers to explain when they had known of his pension arrangement and why they had not acted earlier to do something about it. |
| I think it will be very hard to put this right unless Sir Fred does the decent thing Michael Fallon, Tory MP | I think it will be very hard to put this right unless Sir Fred does the decent thing Michael Fallon, Tory MP |
| Lib Dem Treasury spokesman Vince Cable said Sir Fred should be asked to "renounce" the entitlement and, if he refused, ministers should move to block it. | Lib Dem Treasury spokesman Vince Cable said Sir Fred should be asked to "renounce" the entitlement and, if he refused, ministers should move to block it. |
| But the BBC's Business Editor Robert Peston said there was very little that ministers could do, beyond asking Sir Fred to give up the arrangement, to recover the money. | But the BBC's Business Editor Robert Peston said there was very little that ministers could do, beyond asking Sir Fred to give up the arrangement, to recover the money. |
| He said it would be extremely difficult to prove that Sir Fred had stepped over the line in terms of acceptable behaviour while he was running the bank. | He said it would be extremely difficult to prove that Sir Fred had stepped over the line in terms of acceptable behaviour while he was running the bank. |
| Tory MP Michael Fallon, deputy chairman of the Treasury select committee, said the episode demonstrated the government's "sheer incompetence". | Tory MP Michael Fallon, deputy chairman of the Treasury select committee, said the episode demonstrated the government's "sheer incompetence". |
| "I think it will be very hard to put this right unless Sir Fred does the decent thing," he told BBC News. | "I think it will be very hard to put this right unless Sir Fred does the decent thing," he told BBC News. |
| Former Cabinet minister Peter Hain said on the BBC's Question Time programme that the "vastly inflated" pension payment was "completely unacceptable". | Former Cabinet minister Peter Hain said on the BBC's Question Time programme that the "vastly inflated" pension payment was "completely unacceptable". |
| "I find it completely astonishing that this could have happened." | "I find it completely astonishing that this could have happened." |
| The Treasury has declined to be drawn on the future of existing members of the RBS board who approved Sir Fred's pension award in October. | The Treasury has declined to be drawn on the future of existing members of the RBS board who approved Sir Fred's pension award in October. |
| New RBS chairman Sir Philip Hampton, appointed earlier this month, said he had asked Sir Fred two weeks ago to voluntarily reduce the pension but had yet to receive an answer. | New RBS chairman Sir Philip Hampton, appointed earlier this month, said he had asked Sir Fred two weeks ago to voluntarily reduce the pension but had yet to receive an answer. |
| The latest government cash injection will give the taxpayer an 84% economic stake in the bank. | The latest government cash injection will give the taxpayer an 84% economic stake in the bank. |