4 of 4 people found the following review helpful
APPALLING CORPORATE GOVERNANCE,
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This review is from: Shredded: Inside RBS, the Bank That Broke Britain (Hardcover)
Experienced financial journalist Ian Fraser, writes the definitive account of the turbulent expansion of The Royal Bank of Scotland (RBS) under Fred Goodwin and calamitous, if not inevitable collapse into bankruptcy saved only by a huge dollop of tax payers cash.
Most will be aware of the RBS problems in the latter part of the first decade of the 21st century, the eye-wateringly costly public bailout, and the subsequent outing and vilification of Fred 'The Shred', but few I guess will be cognizant of the frightening and highly irresponsible manner one man was allowed to run riot with a large concerns financial stability, conducting a mindless, ego-charged, fear dominated policy that was guaranteed without any doubt whatsoever to end in RBS's ruination.
Goodwin's negligent governance is to a large extent beside the point as he should have been stopped in his tracks when he embarked on his crazy run. He was surrounded by very high paid executives, a Chairman and Board of Directors, a phalanx of Accountants, Auditors, Lawyers, umpteen Regulatory Bodies, all of whom must have been struck blind and deaf for not pulling him up and stopping the lunacy, because that is what is was, an aberration that should never have been allowed to get going, let alone gain momentum. It is inconceivable that not one single person has been criminally charged let alone sent to prison for allowing this conduct to fester and grow within RBS to the extent of nearly bringing about a falling apart of the entire banking system leading to catastrophic consequences with much deprivation on the whole economy.
Until governance of a company is very strictly defined, monitored independently, and encapsulated in legislation with serious consequences both in terms of loss of freedom and severe personal financial penalties, then as sure as eggs are eggs, the RBS calamity will happen again, and again.
Ian Fraser has written a lengthy tome, absolutely brilliantly researched, which is easy to absorb, difficult to put down, highly informative, but at the same time exposes issues which are extremely worrying.
A very good book.