Goodwin Criticism Removed

In evidence to the Treasury Select Committee, Bill Knight, one of two independent experts appointed to review the FSA’s RBS report, stated that criticism of (Sir) Fred Goodwin’s competence of lead an international bank had been removed from the report.

According to Mr. Knight, this was the correct action given that there was no evidence of “incompetence”.

I am confused.

Surely the issue is best dealt with by asking the following questions:-

• Did RBS’ board stipulate the skills necessary for its CEO?
• Was international bank leadership experience one of these areas of competence?
• Did the CEO possess these skills?

The report does not seem to approach this dilemma in this manner.