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The defining moment of this supposed public humiliation came early on. It was when the bank chiefs were asked about their remuneration, whether they thought their company's bonus policy had contributed to the subsequent disaster.
Andy Hornby, the smooth, young-looking former CEO of HBOS, replied he had invested his entire cash bonus in the bank's shares. Alongside him, Sir Fred Goodwin, ex-boss of Royal Bank of Scotland, said he had done the same, that his payout had gone on shares in the bank, and that he had not sold a share in RBS since he joined the company.
It was the killer fact that presumably had been seized upon in rehearsals with their PRs. "Make sure you say it," you could hear the advisers urging.
At a stroke they went from being fatcats to victims, same as everyone else. Yes, they'd had big salaries, but it was the bonuses the treasury committee wanted to hear about, and their money was gone. The apparently grasping, reckless capitalists had already said "sorry" - John McFall had invited them to apologise at the start and to a man they did so, and fulsomely. This, coupled with the image of the Hornby and Goodwin households watching their inheritances disappear as share prices dived, was enough.
They wore their best, sober suits and muted ties. They sported new haircuts. Of the gang of four Lord Stevenson, the former HBOS chairman, was the most confident - he's always been a good public performer. A close friend of Lord Mandelson, he oozed class, lecturing MPs on the story of the last 18 months and how banking operates.
Hornby seemed nervous but grew in confidence. Sir Tom McKillop, the former RBS chairman, had a haunted expression not helped by the heavy bags under his eyes.
Always in a weak position as he'd worked in pharmaceuticals and had never been a banker, McKillop was expected to be targeted by MPs. But after a while he too was able to relax, his usual fiery temper kept at bay. He put his hand up to the colossal ABN-Amro purchase as "a bad mistake", but before they rounded on him told how the board met no less than 18 times before agreeing to the deal.
If Goodwin's knees were knocking under the table it was never evident - you don't get called "the Shred" for nothing. Speaking in his soft but firm Renfrewshire tones, he said how he'd asked himself "time and time again" at what point it had gone wrong.
When he was asked what his qualifications for the job had been, he rattled them off: a degree in law, chartered accountant, chief executive of Clydesdale Bank, the list went on. His quick brain was no doubt urging him to ask the MPs what they knew about banking, but he was on trial here and you mustn't diss the judge, oh no.
He smiled. A thin grin but a grin nevertheless. His eyes were sparkling. Goodwin, the dour Scot, the man dubbed "world's worst banker", had nothing to fear from this lot.
You knew which way the session was going when McFall was reduced to cutting the bankers off in mid-flow. He was in his rights as chairman but it signalled what was obvious - that any head of steam his committee had built up had evaporated. At the end, the four, now out of work, trooped off, their heads high. They should be found jobs, and urgently - the NHS, could do, and probably is doing, far worse.
Reader views (2)
The directors of the banks that became insolvent acted in a reckless and irresponsible manner. Any bonus payments received must be repaid.
- Steve Dawborne, London, 11/02/2009 09:10
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That's what a Select Committee is - a group of ill-prepared MPs 'grilling' far smarter people, after which nothing. Will they produce a report and what will it say? They shouldn't bother, it would be worthless reading. Meanwhile the usurers of the universe, having said 'Oooh, I'm really sorry,' toddle off back to their palaces and the taxpayer sees once again that his government is a pitiful disaster, full of wimps and led by one. Even Putin has stopped his bankers getting bonuses. What will Brown do now? Read Burns, perhaps. 'Poor sleekit tim'rous beestie. Wha' a panic's in tha breastie.'
- John Problem, Hackney Wick, London, UK, 10/02/2009 18:36
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