'Fred the Shred' resists pressure to give up pension

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'Fred the Shred' resists pressure to give up pension

Fri 27th Feb 2009

The ex-bank boss known as Fred the Shred has written to the treasury to tell them that he is not prepared to give up his pension, despite the fact that his former bank recently posted the largest ever loss made by a UK company.

Sir Fred Goodwin - as Fred the Shred is properly known - had been asked to voluntarily relinquish some of the £650,000 pension he is currently being paid by the Royal Bank of Scotland (RBS) after it emerged that the taxpayer may have to meet the cost of bailing out the bank again.

However Sir Fred rejected the request, which came from the treasury minister Lord Myers claiming he had already given up the equivalent of 12 months salary and all his share options.

Sir Fred explained: "I believe these gestures were appropriate in the circumstances and sufficient […] I believe they remain so."

Gordon Brown recently pledged to get rid of the culture of bank bonuses which he claims rewards excessive risk-taking.

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