The Government is under pressure to sack Treasury Minister, Lord Myners, who approved a £693,000-a-year pension for former RBS boss Sir Fred Goodwin, despite the bank posting losses of over £24bn.
Gordon Brown has said he is angry about the £16m deal, but the Conservatives have branded his anger as 'synthetic' after it was revealed the Treasury had known about the pension since October.
Lord Myners claims he was under the impression the pension was a legally-binding contractual arrangement in October. Chancellor Alistair Darling says the Treasury only became aware of the true nature of the arrangement 'in the last few days.'
Trade Unions says Lord Myners should resign over the blunder as he was either aware of the arrangement or did not bother to check the details.
The Prime Minister has threatened Goodwin with legal action if he fails to give up the pension himself, but he has so far remained defiant.
Shadow Chancellor George Osbourne says the Chancellor's and Prime Minister's anger is 'synthetic', claiming they knew about the pension months ago but only decided to take action once the news entered the public domain.
UK Financial Investments, which manages the Government's shareholding in RBS, will investigate the circumstances surrounding the pension and find out how to claw back the cash.
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
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