Sir Fred Goodwin, the outgoing chief executive of the Royal Bank of Scotland, was drawn into an apology to shareholders by a former bank employee amid dramatic scenes at a meeting over its future.
Sir Fred Goodwin, the outgoing chief executive of the Royal Bank of Scotland, was drawn into an apology to shareholders by a former bank employee amid dramatic scenes at a meeting over its future.
It a took a last-minute call from the floor of around 400 shareholders - at the bank's general meeting yesterday to approve a £20bn bailout plan - for the bank chief to say sorry.
Sir Fred, who presided over an unprecedented collapse of the historic institution, was encouraged into the uncomfortable move by former employee Ian Blackie.
But once he did, he apologised three times.
Addressing bank chairman Sir Tom McKillop, who had earlier said he was "profoundly sorry", Mr Blackie said he would "like to hear from Sir Fred", adding: "He's had ample opportunity over the last few months. I would like to hear him say sorry."
Sir Tom said: "I can only ask Sir Fred to say whatever he wants to say."
Sir Fred responded: "I don't want there to be any doubt in anyone's mind at all (that I am anything) other than extremely sorry that this has come about.
"I echo entirely all the statements that the chairman expressed on behalf of all the board earlier on. It is something about which I am extremely sorry and I am sad to leave the company in these difficult times. I am extremely sorry."
A career decades-long in the making appeared then to lie in tatters as he admitted afterwards he had no idea what he would do now except "have a rest".
He will receive a "standard pension", after waiving other benefits.
Shareholders voted 99.28% in favour of the bailout, which will see the bank offer £15bn in new ordinary shares, with the government promising to buy up any remaining. The move could put nearly 60% of the company in public hands.
The government has also committed itself to buying £5bn in preference shares which RBS will buy back in time but because RBS's shares are trading well below the 65.5p offer price made earlier this month, despite a rise yesterday at one stage of 13% to 46p, investors are likely to snub them.
This leaves the taxpayer with a potential 58% stake. At the meeting, there were emotional cries from shareholders, angry that the board had led the bank into its worst crisis.
One shareholder called for more resignations, to which Sir Tom responded that he believed the board had acted "honourably".
The handling of the collapse was described as a "calamity" that had come about by "reckless acquisition".
Stephen Hester, Sir Fred's replacement, spoke at the meeting, answering questions on what he would do with the £20bn.
He said: "You have my assurance that myself and my colleagues will work as hard as we possibly can to improve the situation that the bank has found itself in. I think we have good potential."
Speaking after the meeting, Mr Hester said Royal Bank had very strong businesses, but made clear the extent of the challenges it faced.
He said financial markets finally appeared to be starting to stabilise but that the world was set for painful recession.
"My expectation is there will be job losses simply because economic activity levels will be lower," he added.
Meanwhile, a senior MP says he believes that public pressure for full nationalisation of the banks will mount if they do not return swiftly to normal lending to small businesses.
Labour's John McFall, who chairs the House of Commons Treasury Committee, said the government may have to step in again to help the banks if last month's £37bn recapitalisation does not prove to be enough.
