Published March 26, 2009

For former RBS chief, the crisis hits home and hurts

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(LONDON) Vandals attacked the home of former Royal Bank of Scotland (RBS) head Fred Goodwin early yesterday, smashing windows at the house of the ex-CEO whose £700,000 (S$1.55 million) annual pension has prompted public outrage.

Smashing time: Police visiting Mr Goodwin's home yesterday after vandals smashed windows and damaged a car in the driveway. The ex-RBS CEO's £700,000 annual pension has prompted public outrage, after the bank reported a loss of more than £24 billion in 2008.

Police said they were called to the house in Edinburgh, the Scottish capital, yesterday. Windows in the brownstone home were broken, and there was a hole in the rear windshield of a Mercedes-Benz S600 parked in the driveway.

An e-mail sent yesterday to The Edinburgh Evening News claimed that the attack was carried out by 'Bank Bosses are Criminals', a previously unknown group. The claim could not be independently verified.

Mr Goodwin resigned as chief executive last year as RBS ran into severe difficulties and had to be propped up by the British government.

Last month, RBS reported a loss of more than £24 billion in 2008 - the largest annual loss in British corporate history.

Dubbed 'Fred the Shred' for his ruthless cost- cutting, Mr Goodwin rejected government pressure to accept a reduction in his early retirement deal. Government officials said they were trying to challenge his pension contract in court but haven't announced any action.

Mr Goodwin led the acquisition of Dutch rival ABN Amro in 2007 for £49 billion. The deal helWped bring RBS to near collapse after the credit crunch exposed the Dutch bank's weak balance sheet. The British government, which kept RBS afloat with a £20 billion bailout, is expected to soon raise its stake to 68 per cent of shares.

RBS spokesman Neil Moorhouse said the company, which has provided some security for Mr Goodwin, was aware of the incident. 'There are temporary security arrangements in place for Sir Fred, as is normal practice for departing executives. They'll be reviewed in the coming months, depending on the security situation,' Mr Moorhouse said.

No one was believed to be home when the house was vandalised, according to police.

In the US, death threats have been pouring in against American International Group (AIG) executives since a controversy over bonuses paid with taxpayer bailout money broke.

Corporate officials have advised employees to avoid wearing the company logo, travel in pairs at night and park in well-lit areas. -- AP