Former RBS boss Fred Goodwin stripped of knighthood
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Fred Goodwin Mr Goodwin was in charge of RBS in the run-up to its near collapse in 2008
Former Royal Bank of Scotland boss Fred Goodwin has had his knighthood removed.
Mr Goodwin, who was heavily criticised over his role in the bank's near-collapse in 2008, was given the honour by the Labour government in 2004.
The Queen cancelled and annulled the title following Whitehall advice.
Prime Minister David Cameron said it was the "right decision". In the past, only convicted criminals or people struck off of professional bodies have had knighthoods taken away.
He oversaw the multi-billion-pound deal to buy Dutch rival ABN Amro at the height of the financial crisis in 2007, which led to RBS having to be bailed out to the tune of ?45bn by taxpayers.
'Exceptional case'
There had been a growing clamour for Mr Goodwin to be stripped of his honour, following thousands of job losses at RBS and in the banking industry since then and its impact on the wider economy.
After the removal of the knighthood, a Cabinet Office spokesman said: "The scale and severity of the impact of his actions as CEO of RBS made this an exceptional case."
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image of Nick Robinson Analysis Nick Robinson Political editor
Sir Fred Goodwin is now just Fred Goodwin.
There may well be plaudits for a decision to remove the knighthood from Mr Goodwin, a man many see as the symbol of the financial crisis.
But this could be tricky - there's a sense that other people with knighthoods could run into difficulty.
Plenty may be wondering whether the committee will now start working through every banker with a knighthood who has since faced criticism for decisions they took in the past.
He added: "Both the Financial Services Authority and the Treasury select committee have investigated the reasons for this failure and its consequences.
"They are clear that the failure of RBS played an important role in the financial crisis of 2008/9 which, together with other macroeconomic factors, triggered the worst recession in the UK since the Second World War and imposed significant direct costs on British taxpayers and businesses.
"Fred Goodwin was the dominant decision-maker at RBS at the time. In reaching this decision, it was recognised that widespread concern about Fred Goodwin's decisions meant that the retention of a Knighthood for 'services to banking' could not be sustained."
'Token gesture'
The BBC's business editor Robert Peston said Mr Goodwin was in a "class of his own" in terms of the risks that he took at RBS - reflected in the size of the bailout required to rescue the company.
In 2009, Mr Goodwin - who received an annual pension of ?650,000 after leaving the bank - told a committee of MPs he "could not be more sorry" for what had happened.
Labour leader Ed Miliband and Prime Minister David Cameron have both pressed for the knighthood to be removed.
Deputy Prime Minister and Lib Dem leader Nick Clegg said Tuesday's announcement was the "right decision".
The Unite union also welcomed the move, with senior official David Fleming saying it was "a token gesture...but one which will be well received by the thousands of workers who lost their jobs during his rule".
The forfeiture committee - whose members include the cabinet secretary, the top civil servant at the Home Office, the top lawyer at the Treasury and the top official in the Scottish government - made the decision to recommend he lose the honour.
The Queen has the sole authority to rescind a knighthood, after taking advice.
Comments (93)
Fred Goodwin Mr Goodwin was in charge of RBS in the run-up to its near collapse in 2008
Former Royal Bank of Scotland boss Fred Goodwin has had his knighthood removed.
Mr Goodwin, who was heavily criticised over his role in the bank's near-collapse in 2008, was given the honour by the Labour government in 2004.
The Queen cancelled and annulled the title following Whitehall advice.
Prime Minister David Cameron said it was the "right decision". In the past, only convicted criminals or people struck off of professional bodies have had knighthoods taken away.
He oversaw the multi-billion-pound deal to buy Dutch rival ABN Amro at the height of the financial crisis in 2007, which led to RBS having to be bailed out to the tune of ?45bn by taxpayers.
'Exceptional case'
There had been a growing clamour for Mr Goodwin to be stripped of his honour, following thousands of job losses at RBS and in the banking industry since then and its impact on the wider economy.
After the removal of the knighthood, a Cabinet Office spokesman said: "The scale and severity of the impact of his actions as CEO of RBS made this an exceptional case."
Continue reading the main story
image of Nick Robinson Analysis Nick Robinson Political editor
Sir Fred Goodwin is now just Fred Goodwin.
There may well be plaudits for a decision to remove the knighthood from Mr Goodwin, a man many see as the symbol of the financial crisis.
But this could be tricky - there's a sense that other people with knighthoods could run into difficulty.
Plenty may be wondering whether the committee will now start working through every banker with a knighthood who has since faced criticism for decisions they took in the past.
He added: "Both the Financial Services Authority and the Treasury select committee have investigated the reasons for this failure and its consequences.
"They are clear that the failure of RBS played an important role in the financial crisis of 2008/9 which, together with other macroeconomic factors, triggered the worst recession in the UK since the Second World War and imposed significant direct costs on British taxpayers and businesses.
"Fred Goodwin was the dominant decision-maker at RBS at the time. In reaching this decision, it was recognised that widespread concern about Fred Goodwin's decisions meant that the retention of a Knighthood for 'services to banking' could not be sustained."
'Token gesture'
The BBC's business editor Robert Peston said Mr Goodwin was in a "class of his own" in terms of the risks that he took at RBS - reflected in the size of the bailout required to rescue the company.
In 2009, Mr Goodwin - who received an annual pension of ?650,000 after leaving the bank - told a committee of MPs he "could not be more sorry" for what had happened.
Labour leader Ed Miliband and Prime Minister David Cameron have both pressed for the knighthood to be removed.
Deputy Prime Minister and Lib Dem leader Nick Clegg said Tuesday's announcement was the "right decision".
The Unite union also welcomed the move, with senior official David Fleming saying it was "a token gesture...but one which will be well received by the thousands of workers who lost their jobs during his rule".
The forfeiture committee - whose members include the cabinet secretary, the top civil servant at the Home Office, the top lawyer at the Treasury and the top official in the Scottish government - made the decision to recommend he lose the honour.
The Queen has the sole authority to rescind a knighthood, after taking advice.
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