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| Harman warning on Goodwin pension | Harman warning on Goodwin pension |
| (30 minutes later) | |
| Harriet Harman has said former Royal Bank of Scotland (RBS) chief Sir Fred Goodwin should not "count on" keeping his full £650,000 a year pension. | Harriet Harman has said former Royal Bank of Scotland (RBS) chief Sir Fred Goodwin should not "count on" keeping his full £650,000 a year pension. |
| The deputy Labour leader described the pension settlement - agreed by the RBS board - as "money for nothing". | The deputy Labour leader described the pension settlement - agreed by the RBS board - as "money for nothing". |
| The sum was unacceptable in "the court of public opinion," she told the BBC, and the government "would step in". | The sum was unacceptable in "the court of public opinion," she told the BBC, and the government "would step in". |
| All three political parties have attacked the pension payment after RBS made a record loss of £24bn. | All three political parties have attacked the pension payment after RBS made a record loss of £24bn. |
| The former RBS chief executive has refused to give up some of the money voluntarily despite pressure from Gordon Brown, saying the pension package was approved by ministers in October before he left the bank. | The former RBS chief executive has refused to give up some of the money voluntarily despite pressure from Gordon Brown, saying the pension package was approved by ministers in October before he left the bank. |
| It is not enforceable in the court of public opinion and that that is where the government steps in Harriet Harman | |
| Ms Harman said Sir Fred should agree to waive some of the cash, saying this was the most "honourable" thing to do. | Ms Harman said Sir Fred should agree to waive some of the cash, saying this was the most "honourable" thing to do. |
| "Sir Fred Goodwin should not count on being £650,000 a year better off because it is not going to happen," she told BBC One's Andrew Marr show. | |
| Ministers have said they would be prepared to take legal action to recover some of the money, saying the pay-out is inconsistent with the disastrous state that Sir Fred left the bank in. | |
| 'Not acceptable' | |
| Ms Harman declined to say how the government would do this but made it clear it would not tolerate the award as it stands. | |
| "The prime minister has said that it is not acceptable and therefore it will not be accepted," she added. | |
| "And it might be enforceable in a court of law, this contract, but it is not enforceable in the court of public opinion and that that is where the government steps in." | |
| Her comments followed a similar warning from Business Secretary Lord Mandelson who said Sir Fred was "personally responsible" for bringing RBS to the brink of collapse and did not deserve such rewards after such a "terrible misjudgement". | |
| In a letter published on Thursday, Sir Fred argued that Treasury Minister Lord Myners had approved the pension payment after the banker had made other "financial gestures" such as waiving the right to severance pay and some share options. | |
| But Lord Myners said he had not realised at the time that the pension agreement was not contractually binding on the RBS board and could later be altered. | |
| The Conservatives have described the pension settlement as "obscene" while the Lib Dems have urged the government to step in to block it. | |
| The government pumped billions into RBS in October to keep it afloat and currently owns a stake of more than 70% in the bank. |