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10/02/2009
Bank Bosses Offer 'Profound Apologies' For Crisis
Ex top bankers blamed for Britain's financial crisis have apologised for their role in the disaster.
All four bankers appeared before the Treasury Select Committee, and started their evidence with apologies for the "turn of events" which led to the banks being bailed out by the Treasury.
Former bosses from the Royal Bank of Scotland (RBS) and HBOS are being grilled over the mistakes that led to massive bailouts for both institutions.
Sixty-eight per cent of the RBS is now owned by the state, and HBOS merger with Lloyds TSB which managed to save it from being fully nationalised, after both lenders fell into financial crisis.
Lord Stevenson of Coddenham, former HBOS Chairman, said he and former Chief Executive Andy Hornby were "profoundly sorry".
Sir Tom McKillop, former Chairman of RBS, told MPs that he would "echo" the comments, and he made a full apology in November.
Meanwhile, Sir Fred Goodwin - previously Chief Executive of RBS - added: "I apologised in full and I'm happy to do so again."
Committee Chairman John McFall demanded to know about the banks' 'bonus culture', how much bosses earned and whether the payment of massive bonuses contributed to the collapse of the banks.
"Four months ago, the taxpayer had to bail out the bank, if they had not done, there would not be a bank," Mr McFall said.
"And yet, this bonus culture indicates that the Royal Bank of Scotland may well have been seriously considering, paying out bonuses. How on earth, could they even agree that there should be any bonuses given those circumstances?"
Mr Hornby said he had taken no bonus last year, and he had never taken any bonus in the form of cash.
"I have never received one single penny in cash bonus," he said, referring to his time not only as boss of HBOS but also his time on the board.
Instead, he added, he had taken his bonuses in the form of shares.
Derek Simpson, joint leader of the Unite union which is organising a protest in Westminster, said: "These senior bankers have brought the UK's financial services industry to its knees without any acknowledgement of the misery that they have caused the hard-working staff in the sector."
The GMB union said bonuses paid to banking executives over the past few years were given under "false pretences" and should be taken back.
General Secretary Paul Kenny said: "All the talk about future bonus payments misses the point. Past bonuses should never have been paid in the first place."
(JM/BMcC)
All four bankers appeared before the Treasury Select Committee, and started their evidence with apologies for the "turn of events" which led to the banks being bailed out by the Treasury.
Former bosses from the Royal Bank of Scotland (RBS) and HBOS are being grilled over the mistakes that led to massive bailouts for both institutions.
Sixty-eight per cent of the RBS is now owned by the state, and HBOS merger with Lloyds TSB which managed to save it from being fully nationalised, after both lenders fell into financial crisis.
Lord Stevenson of Coddenham, former HBOS Chairman, said he and former Chief Executive Andy Hornby were "profoundly sorry".
Sir Tom McKillop, former Chairman of RBS, told MPs that he would "echo" the comments, and he made a full apology in November.
Meanwhile, Sir Fred Goodwin - previously Chief Executive of RBS - added: "I apologised in full and I'm happy to do so again."
Committee Chairman John McFall demanded to know about the banks' 'bonus culture', how much bosses earned and whether the payment of massive bonuses contributed to the collapse of the banks.
"Four months ago, the taxpayer had to bail out the bank, if they had not done, there would not be a bank," Mr McFall said.
"And yet, this bonus culture indicates that the Royal Bank of Scotland may well have been seriously considering, paying out bonuses. How on earth, could they even agree that there should be any bonuses given those circumstances?"
Mr Hornby said he had taken no bonus last year, and he had never taken any bonus in the form of cash.
"I have never received one single penny in cash bonus," he said, referring to his time not only as boss of HBOS but also his time on the board.
Instead, he added, he had taken his bonuses in the form of shares.
Derek Simpson, joint leader of the Unite union which is organising a protest in Westminster, said: "These senior bankers have brought the UK's financial services industry to its knees without any acknowledgement of the misery that they have caused the hard-working staff in the sector."
The GMB union said bonuses paid to banking executives over the past few years were given under "false pretences" and should be taken back.
General Secretary Paul Kenny said: "All the talk about future bonus payments misses the point. Past bonuses should never have been paid in the first place."
(JM/BMcC)
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