BANKRUPT BANKER
Worst Banker in the World? Fred Goodwin, who until October served as CEO of the Royal Bank of Scotland.
Saturday, 13 December 2008
There's no dearth of candidates. Richard Fuld of Lehman Bros. and James Cayne of Bear Stearns presided over the remarkably disruptive failures of their respective firms. But Bear and Lehman weren't banks, properly speaking: They were hedge funds lashed to investment banks. And their demises didn't require much of a public bailout. The failures of AIG, Fannie Mae, and Freddie Mac necessitated massive bailouts, but they weren't exactly banks, either. Iceland's bankers have effectively brought their entire country to ruin. But since Iceland's population is a mere 300,000, they're off the hook. In an interview Monday, Nobel laureate Paul Krugman nominated the gang that ran Citigroup into the ground. But Citi was so big it took three CEOs—Sandy Weill, Chuck Prince, and Vikram Pandit—to bring it to the brink of disaster.No, my nominee is someone whose name may not be familiar to American audiences. He's Fred Goodwin, who until October served as CEO of the Royal Bank of Scotland. Goodwin (here's the Wikipedia entry about him) took the helm of RBS in 2000 and proceeded to turn it into an international powerhouse. Known as "Fred the Shred" for his willingness to cut costs—and jobs—he emerged as Britain's leading banker. He was even knighted in 2004 for services to banking. But the bank, which this summer was Britain's largest, is now neither Royal nor Scottish nor much of a bank. RBS's slogan is "Make it happen." A review of the record shows that Goodwin indeed made it happen. He aced every requirement for a hubristic CEO.
