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| Version 1 | Version 2 |
|---|---|
| Brown targets Sir Fred's pension | Brown targets Sir Fred's pension |
| (about 1 hour later) | |
| Gordon Brown has said he is looking into "every possible avenue" legally to reduce former RBS chief Sir Fred Goodwin's £16m pension deal. | Gordon Brown has said he is looking into "every possible avenue" legally to reduce former RBS chief Sir Fred Goodwin's £16m pension deal. |
| He said lawyers were looking at details of the deal but did not repeat Harriet Harman's suggestion a new law could be passed to stop Sir Fred getting it. | He said lawyers were looking at details of the deal but did not repeat Harriet Harman's suggestion a new law could be passed to stop Sir Fred getting it. |
| Ms Harman said on Sunday ministers would "step in" and Sir Fred "should not count on" getting the full package. | Ms Harman said on Sunday ministers would "step in" and Sir Fred "should not count on" getting the full package. |
| Lib Dem deputy Vince Cable said a law to deal with one person was "potty". | Lib Dem deputy Vince Cable said a law to deal with one person was "potty". |
| In an interview with TalkSport radio on Monday, the prime minister said he was looking at the "very strange" decision by the Royal Bank of Scotland to agree such a large pay-off - ahead of announcing a record £24bn loss. | In an interview with TalkSport radio on Monday, the prime minister said he was looking at the "very strange" decision by the Royal Bank of Scotland to agree such a large pay-off - ahead of announcing a record £24bn loss. |
| 'Discretionary' | 'Discretionary' |
| He added: "Of course if it came to a court of law, we would be legally bound by the contracts that have been entered into. | He added: "Of course if it came to a court of law, we would be legally bound by the contracts that have been entered into. |
| "But I think there are aspects of the contracts that are discretionary and that is what our lawyers are looking at in much detail at the moment." | "But I think there are aspects of the contracts that are discretionary and that is what our lawyers are looking at in much detail at the moment." |
| Later his official spokesman said "all legal avenues" were being explored including looking at Sir Fred's employment contract and "whether the RBS board took the decision in full knowledge of all the facts". | Later his official spokesman said "all legal avenues" were being explored including looking at Sir Fred's employment contract and "whether the RBS board took the decision in full knowledge of all the facts". |
| Harriet Harman says Sir Fred will not get his pension pay-off | Harriet Harman says Sir Fred will not get his pension pay-off |
| But asked whether the government would step in, if no legal means could be found to reduce the deal, he added: "Obviously, we are bound by the rule of law." | But asked whether the government would step in, if no legal means could be found to reduce the deal, he added: "Obviously, we are bound by the rule of law." |
| When Sir Fred, 50, agreed to take early retirement as RBS chief executive in October his pension fund doubled to £16m. | When Sir Fred, 50, agreed to take early retirement as RBS chief executive in October his pension fund doubled to £16m. |
| At the time the government was preparing to pump £20bn into the crippled bank and wanted to get new management in place. | At the time the government was preparing to pump £20bn into the crippled bank and wanted to get new management in place. |
| The PM has said he only discovered recently that the pension package was in fact "discretionary" and could have been blocked. | The PM has said he only discovered recently that the pension package was in fact "discretionary" and could have been blocked. |
| But Sir Fred has refused to voluntarily give up some of the money, despite government pressure, arguing the package was approved by Treasury minister Lord Myners. | |
| 'Court of public opinion' | 'Court of public opinion' |
| Shadow chancellor George Osborne has criticised the government's response as "synthetic" because "they knew all along" about the deal. | |
| However Schools Secretary Ed Balls told BBC 5 Live it was "not true" that Lord Myners had endorsed the deal: "Of course he didn't. He had no idea this was being done in a discretionary way. He's made that entirely clear." | |
| At the time Mr Balls said Lord Myners was focussed on making sure RBS "didn't go into complete freefall". | |
| On Sunday Ms Harman told the BBC Sir Fred "should not count" on being £693,000 a year better off "because it is not going to happen". | |
| She said: "The prime minister has said that it is not acceptable and therefore it will not be accepted." | |
| I really don't know whether she's thought this thing through at all Vince CableLiberal Democrats Harman warning on Goodwin pension | |
| "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 is where the government steps in." | "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 is where the government steps in." |
| Asked whether she was saying legislative action would have to be taken, she said she did not want to "jump the gun" as Sir Fred had been asked to "forego it" and the contract was being "crawled over" by the lawyers to see if it was enforceable. | Asked whether she was saying legislative action would have to be taken, she said she did not want to "jump the gun" as Sir Fred had been asked to "forego it" and the contract was being "crawled over" by the lawyers to see if it was enforceable. |
| However she was criticised by Mr Cable, the Lib Dem's Treasury spokesman, who told the BBC it was "absolutely potty" to suggest bringing in a new law for one person and applying it retrospectively. | However she was criticised by Mr Cable, the Lib Dem's Treasury spokesman, who told the BBC it was "absolutely potty" to suggest bringing in a new law for one person and applying it retrospectively. |
| "I really don't know whether she's thought this thing through at all," he said. | "I really don't know whether she's thought this thing through at all," he said. |
| "Either the government will just have to lump it or do what I think is probably more appropriate which is simply to not pay and leave him to challenge it." | "Either the government will just have to lump it or do what I think is probably more appropriate which is simply to not pay and leave him to challenge it." |