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| Myners defends RBS pension stance | |
| (about 2 hours later) | |
| City Minister Lord Myners denies "endorsing" the £693,000-a-year pension of disgraced Royal Bank of Scotland (RBS) boss Sir Fred Goodwin. | City Minister Lord Myners denies "endorsing" the £693,000-a-year pension of disgraced Royal Bank of Scotland (RBS) boss Sir Fred Goodwin. |
| Speaking in the House of Lords, the minister mounted a vigorous defence of his personal role in the affair. | Speaking in the House of Lords, the minister mounted a vigorous defence of his personal role in the affair. |
| He said he had not been told exactly how much Sir Fred would get, though he did know it would be a "large sum". | He said he had not been told exactly how much Sir Fred would get, though he did know it would be a "large sum". |
| Meanwhile, the chancellor has told the Daily Telegraph that ministers must have the "humility" to admit mistakes. | |
| Lord Myners has been blamed by the opposition for failing to block the massive pension payout during the crucial negotiations last October to bail out the banks which saw Sir Fred ousted as RBS chief executive. | Lord Myners has been blamed by the opposition for failing to block the massive pension payout during the crucial negotiations last October to bail out the banks which saw Sir Fred ousted as RBS chief executive. |
| Gordon Brown has confirmed lawyers working for the government were looking at Sir Fred's contract with RBS to see if any of his £16m pension pot could be withheld. | Gordon Brown has confirmed lawyers working for the government were looking at Sir Fred's contract with RBS to see if any of his £16m pension pot could be withheld. |
| Lord Myners said that during the weekend of the bail-out, he did not meet RBS chairman Sir Tom McKillop and the senior independent director Bob Scott until the evening of 11 October - the day after it was agreed that Sir Fred would leave the bank. | Lord Myners said that during the weekend of the bail-out, he did not meet RBS chairman Sir Tom McKillop and the senior independent director Bob Scott until the evening of 11 October - the day after it was agreed that Sir Fred would leave the bank. |
| At the talks, in which he was accompanied by a lawyer acting for the Treasury, he said he had used a "standard script" to set out the government's position. | At the talks, in which he was accompanied by a lawyer acting for the Treasury, he said he had used a "standard script" to set out the government's position. |
| I was assured the pension arrangement for Sir Fred Goodwin reflected 30 years of service Lord Myners "I said that, in exchange for support, we would expect there to be no rewards for failure," he told the House. | I was assured the pension arrangement for Sir Fred Goodwin reflected 30 years of service Lord Myners "I said that, in exchange for support, we would expect there to be no rewards for failure," he told the House. |
| "We would expect the boards to minimise the cost of any severance that would arise and we would expect those who were departing from the banks to mitigate to the maximum possible amount the cost of their departure." | "We would expect the boards to minimise the cost of any severance that would arise and we would expect those who were departing from the banks to mitigate to the maximum possible amount the cost of their departure." |
| He said that he had added that he respected legal commitments and the rule of law and would not expect any company to break any legal and contractual agreement to which it was committed. | He said that he had added that he respected legal commitments and the rule of law and would not expect any company to break any legal and contractual agreement to which it was committed. |
| "I was assured that the pension arrangement for Sir Fred Goodwin reflected 30 years of service, and no mention was made to me of discretion in that respect," Lord Myners said. | "I was assured that the pension arrangement for Sir Fred Goodwin reflected 30 years of service, and no mention was made to me of discretion in that respect," Lord Myners said. |
| "No sum was mentioned, although Mr Bob Scott did tell me that Sir Fred's pension would be a large sum. I believe I was only advised of the sum of the pension a few days later. | "No sum was mentioned, although Mr Bob Scott did tell me that Sir Fred's pension would be a large sum. I believe I was only advised of the sum of the pension a few days later. |
| Share options | Share options |
| "I did not endorse the pension of Sir Fred Goodwin. I was shown no papers. I was given no advice, because no decision was sought from me in respect of his pension." | "I did not endorse the pension of Sir Fred Goodwin. I was shown no papers. I was given no advice, because no decision was sought from me in respect of his pension." |
| Meanwhile, the Financial Times reported on Tuesday that Sir Philip Hampton, RBS chairman, has been awarded £1.5m of share options on top of a £750,000 salary. | Meanwhile, the Financial Times reported on Tuesday that Sir Philip Hampton, RBS chairman, has been awarded £1.5m of share options on top of a £750,000 salary. |
| Executives from UK Financial Investments, the body set up by the government to oversee the taxpayer's banking interests, will give evidence to the Treasury select committee on Tuesday. | Executives from UK Financial Investments, the body set up by the government to oversee the taxpayer's banking interests, will give evidence to the Treasury select committee on Tuesday. |
| Chairman Glenn Moreno and chief executive John Kingman are likely to be quizzed about bonuses and Goodwin's pension. | Chairman Glenn Moreno and chief executive John Kingman are likely to be quizzed about bonuses and Goodwin's pension. |
| And in an interview in the Daily Telegraph, Chancellor Alistair Darling said ministers must have the "humility" to admit mistakes were made in the lead-up to the financial crisis. | |
| Mr Darling said: "There are a lot of lessons to be learnt by regulators, governments, all of us. All of us have to have the humility to accept that over the last few years things have got out of alignment." | Mr Darling said: "There are a lot of lessons to be learnt by regulators, governments, all of us. All of us have to have the humility to accept that over the last few years things have got out of alignment." |