Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: https://www.socialistparty.org.uk/issue/569/7006

From The Socialist newspaper, 4 March 2009

RBS pension scandal: Not a penny for these fat cats!

RESEMBLING SOME kind of feudal payment in perpetuity, sacked Royal Bank of Scotland boss Sir Fred Goodwin's 693,000 annual pension is absolutely outrageous. It's no wonder that Goodwin has security staff and CCTV cameras (paid for by RBS) protecting his Edinburgh home!

Pete Mason

As RBS declared the biggest corporate loss in British history (24 billion), Goodwin defended the payout he drew, at the age of 50, as soon as he was thrown out of the bank for wrecking it.

The government, looking for a credibility bailout - despite its complicity in this 'robbery' - threatened legal action, even hinting at retrospective legislation but has mainly appealed to Sir Fred's 'better nature' not to take the full pension.

Sir Fred's nature, however, included in 2006 altering the arrangements for RBS's employees, raising the minimum retirement age from 50 to 55 and then only if pensions were cut by between 20% and 40%.

RBS also operates a government approved system whereby the bank 'claws back' part of the payments from its pension schemes when members start drawing a state pension. When the Unite union asked RBS to waive the claw back for the lowest paid workers, Goodwin refused.

Robbers

Lord Myners, who appears to have approved the Goodwin deal, had been the director of a hedge fund which had profited from the collapse of Bradford & Bingley by short-selling its shares, not long before Gordon Brown brought him into his "government of all the talents" team. Goodwin's pension pot, valued at 8.3 million at the end of 2007, appears to have been doubled.

There is no simpler way of recovering the money than by nationalising the banks and throwing onto the street the thieves who handed out Goodwin's annuity - the same people who are now threatening to sack 20,000 blameless bank workers. Goodwin's pension, valued at 16 million, is slightly less than that of ex-RBS USA chief, Lawrence Fish, who had netted $24 million in 2007.

The recently appointed executive director of RBS, Gordon Pell, had a pension valued at the end of 2007 at 8.4 million, more than Goodwin's pension at that time.

The answer to the question: Which is worse? The bank robber or the owner of a bank - is now clear!

RBS has effectively handed over 325 billion of 'toxic' assets to the government, the 'asset protection plan'. The taxpayer receives complex bits of paper worth less than a slip on the floor of a betting shop, while picking up 90% of the losses incurred on these assets.

The trillions of pounds speculated by these former 'masters of the universe' continue to evaporate and the working class pays. A job will be lost every 25 seconds during the recession, experts warn.

Cashiers and other bank workers would have done a better job running RBS than Goodwin and the current incumbent Hester - not measured according to capitalist profitability, but measured according to the right to a secure job and good housing, central tenets of socialism.

The nationalisation which the Labour Party, the Tories and the Liberals fear most is genuine socialist nationalisation, in which the fat cats receive no pay offs, only small shareholders are compensated on the basis of proven need. These would include pensioners who rely on the share income to pay utility bills, for instance.

With socialist nationalisation the banks and big corporations would be run democratically, under workers' control and management.

Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.


In The Socialist 4 March 2009:

Bosses get pay-offs, workers get layoffs

RBS pension scandal: Not a penny for these fat cats!

Hands off our post!

Stop Labour's mail sell-off


Socialist Party Marxist analysis

Marx was right all along


Socialist Party feature

Has globalisation gone into reverse?

Our democratic rights under attack by Labour


Socialist Students

Anti-fees demo success - despite NUS leaders' obstructions

Cardiff student occupation: University divests from arms trade


Youth fight for jobs

Youth Fight for Jobs

The route


Construction workers

Construction workers plan more action

Message from strike leader


Socialist Party workplace news

Stop bullying at BT

Fight the cuts in Nottingham!

Sogefi workers demand strike

NUJ action

Cover supervisors: Teaching on the cheap

National Shop Stewards Network: Brighton launch meeting


Socialist Party women

International Women's Day 8 March: Don't make women pay for the bosses' crisis

Make all women's issues trade union issues

Solidarity with Constantina Kuneva


International socialist news and analysis

Ireland: Scrap the 'pension levy': Organise a one-day general strike

Kashmir: Health workers win demands


May Day

Support The Socialist on May Day this year


 

Home   |   The Socialist 4 March 2009   |   Join the Socialist Party

Subscribe   |   Donate  




Related links:

Fat cats:

trianglePrivatisers sue NHS - kick out the fat cats and fully nationalise our health service!

triangle'Fat Cat Friday' shows where all the money's gone

triangleCare crisis cashing in

triangleTories ensured Carillion meltdown went unchecked

triangleBosses' pay up a fifth while workers' pay falls ...

RBS:

triangleThem & us

triangleRBS to sack 1,000: nationalise the banks

triangleFinancial hardship facing millions of cancer sufferers

triangleNHS v RBS

Pension:

triangleStop the latest Tory attack on our pensions

triangleStriking workers defy the race to the bottom at Glasgow and Aberdeen airports

triangleThe Socialist Inbox

Nationalisation:

triangleCaerphilly Socialist Party: The case for socialist nationalisation

triangleThe landowning establishment

Banks:

triangleWhat lies behind the US-China trade war?

Royal Bank of Scotland:

triangle10 years since the financial crash - the socialist answer to capitalist crisis

Reports and campaigns

Reports and campaigns

18/9/19

Socialist Party

Donate to help us move our press by October

18/9/19

Ilford

Ilford: strike forces school management to back down

18/9/19

London

PCS members at BEIS maintain just fightback

18/9/19

The Socialist

Selling the Socialist

18/9/19

London

London: packed public meeting discusses political crisis

18/9/19

Worcestershire

Worcestershire campaigners plan march to save Bewdley Fire Station

18/9/19

CWU

Strike back to stop bullying Royal Mail bosses

18/9/19

South Yorkshire

South Yorkshire defeats fire cuts

18/9/19

Nottingham

Nottingham College UCU - more strike action planned

18/9/19

PCS

DVSA strike - employer asks for talks

18/9/19

PCS

PCS general secretary candidate: unions must mobilise to drive out Boris

18/9/19

Climate change

Climate protests: which way forward after 20 September?

18/9/19

Lincolnshire

Lincolnshire health visitors strike boost

17/9/19

Trade union

South Yorkshire FBU celebrates halt to cuts

17/9/19

London

Earth strike day in London

triangleMore Reports and campaigns articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party
Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

LATEST POSTS

CONTACT US

Phone our national office on 020 8988 8777

Email: info@socialistparty.org.uk

Locate your nearest Socialist Party branch Text your name and postcode to 07761 818 206

Regional Socialist Party organisers:

Eastern: 0798 202 1969

East Mids: 0773 797 8057

London: 020 8988 8786

North East: 0784 114 4890

North West 07954 376 096

South East: 020 8988 8777

South West: 07759 796 478

Southern: 07833 681910

Wales: 07935 391 947

West Mids: 02476 555 620

Yorkshire: 0114 264 6551

ABOUT US

ARCHIVE

Alphabetical listing


September 2019

August 2019

July 2019

June 2019

May 2019

April 2019

March 2019

February 2019

January 2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999