Goodwin Honor Loss a Watershed as U.K. Gets Tough on Banks
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The British government’s decision to strip former Royal Bank of Scotland Group Plc Chief Executive Officer Fred Goodwin of his knighthood reflects a turning point for bankers as politicians and voters step up criticism of pay and performance.
Yesterday’s announcement came just two days after Goodwin’s successor at the Edinburgh-based bank, Stephen Hester, waived a 963,000-pound ($1.5 million) bonus after pressure from lawmakers and the media. Goodwin was punished for leading the 285-year-old lender into the world’s biggest bank bailout, while Hester was slammed because RBS’s share price has slumped in the past year. Voices from across the political spectrum said the behavior of bankers has to change.