Antigua hit by fraud charge Hundreds of depositors of the Bank of Antigua have been withdrawing their funds after bank owner Sir was charged with fraud. BBC – 18/2/2009

Branches in Antigua, Venezuela, Panama and Ecuador had to cope with queues of anxious customers, reports said. The Eastern Caribbean Central Bank urged people not to Hundreds of people queued at Bank of panic, saying the bank had sufficient funds. It warned that Antigua branches a run on the bank would "precipitate the very situation that we are all trying to avoid". Sir Allen was charged with $8bn (£5.6bn) investment fraud by the US Securities and Exchange Commission. His whereabouts are unknown. A US judge froze the assets of Sir Allen and the other defendants as well as those of the Stanford Group, its Antigua-based subsidiary Stanford International Bank (SIB) and another subsidiary, investment advisor Stanford Capital Management. The Bank of Antigua is part of Sir Allen's global business interests but is separate from SIB. A ministry official told Antiguan radio: "Your savings are safe. Do not panic." At one branch in the Antigua capital St John's about 600 people queued, Reuters news agency said. A similar-sized crowd was seen at another branch near the airport.

Queues of customers formed outside Bank of Antigua branches Prime Minister Baldwin Spencer said on Tuesday that the charges against Sir Allen could have "catastrophic" consequences for the nation, but he also urged people not to panic. The Stanford group is the largest private employer in Antigua and Barbuda, covering financial, media and sporting franchises. In Colombia, the local arm of the Stanford Group stopped trading on the stock exchange. The SEC said on Tuesday that the fraud was "based on false promises and fabricated historical return data". The England and Wales Cricket Board (ECB) suspended sponsorship negotiations with Sir Allen following the fraud charges. The Stanford Group says it is worth more than $40bn, and Forbes magazine lists Sir Allen as the world's 605th richest man.

Stanford bank in Antigua seized Caribbean regulators have taken over the Bank of Antigua, owned by the Stanford group, amid fraud accusations. BBC – 21/2/2009

The move comes after governments elsewhere, including in Peru, Venezuela, and Ecuador, suspended operations at owned by the group. Fraud charges have been filed against the

Sir Allen Stanford stands accused by US financial US businessman authorities of involvement in an $8bn (£5.6bn) investment fraud. He was served civil papers on Thursday. The billionaire had been the single biggest private investor in Antigua. The Securities and Exchange Commission (SEC) has accused Sir Allen of an alleged fraud "of shocking magnitude". However, he is not in custody and has not been charged with any criminal violations. Authorities in the US claim that Sir Allen attracted clients by promising unrealistic returns on investments. Customer accounts held by were frozen until legal claims could be resolved, Reuters news agency reported the company's receiver as saying on Friday. "For the foreseeable future, customers cannot use their accounts to make payments because transfers out of these accounts are frozen until the receiver is able to verify there are no legal or equitable claims against those accounts," said Ralph Janvey, a Dallas lawyer responsible for recovering Stanford assets.

Earlier in the day, the England and Wales Cricket Board (ECB) ended all contractual links with the billionaire. The ECB had signed a multi-million dollar deal with the Texan to stage a series of Twenty20 cricket games and tournaments both in the Caribbean and in England. The England team will not take part in any future Stanford Super Series matches, and the Stanford-sponsored Quadrangular Twenty20 games planned for England in 2009 will not now take place.

'Unusual withdrawal' The Eastern Caribbean Central Bank says it took control of the Bank of Antigua to prevent a run on the bank after the SEC filed civil fraud charges against Sir Allen in the US. The bank was not named in the SEC's complaint. The central bank said it had taken the step after "an unusual and substantial withdrawal of funds". The move by Antigua regulators is aimed at maintaining stability and reassuring customers, correspondents say. Antigua's Financial Services Regulatory Commission has named a British firm, Vantis Business Recovery Services, as a receiver of Stanford International Bank and Stanford Trust Company, the Associated Press reports. In 2006 Sir Allen was knighted by Antigua and holds Antiguan citizenship.

Joint Press Statement on Cabinet's Meeting with Mr. R. Allen Stanford http://www.antigua-barbuda.com/business_politics/stanford_statement.asp February 2003

At the request of Mr R Allen Stanford, a meeting was held on 6th February, 2003 between the Cabinet and senior representatives of the Stanford Financial Group. The two sides recalled with satisfaction the productive and mutually beneficial relationship that has existed between the Stanford Group and the people and Government of Antigua and Barbuda.

The Cabinet expressed its deep appreciation, on behalf of Antigua and Barbuda, for the significant investments made by the Stanford Group in Antigua and Barbuda over the last few years totalling almost EC$160 million. They also noted with approval the large number of persons employed by the Stanford Group in the several phases of these investments. Mr Stanford formally advised Cabinet of his decision to relocate the administrative headquarters of the Caribbean Star airline from Antigua to St Kitts-Nevis. While regretting the necessity for this decision the Cabinet expressed its understanding of the importance to the Stanford Group of spreading its portfolio more broadly than in Antigua which, so far, has been the principal beneficiary of its Caribbean investments. Mr Stanford emphasised that while the administrative headquarters of Caribbean Star would be moved, the engineering department and flight operations of the airline would remain in Antigua.

The Chairman of the Stanford Group also informed Cabinet of his proposal to create an investment fund of US$2 billion for development projects in the Caribbean. The Cabinet applauded this outstanding initiative by Mr Stanford and warmly welcomed his proposal particularly as, over the last five years, the Caribbean has been one of the regions of the world that has received the smallest amount of foreign direct investment. Mr. Stanford revealed that the Headquarters for the Investment Fund will be located in St. John's, Antigua.

Mr. Stanford reiterated his confidence in Antigua and Barbuda and its people, and his team unveiled to the Cabinet plans to invest over EC$256 million in new development projects that would be executed immediately following the Cabinet's approval. Among the projects would be the establishment of a retail/entertainment village across from the airport terminal at a cost of EC$40 million, development on Maiden Island at a cost of $135 million, and the completion of an FBO to service private aircraft at a cost of approximately EC$7 million. The additional projects will bring the total amount invested at the V.C. Bird International Airport to $415 million.

The Cabinet welcomed these new investments by the Stanford Group and expressed their appreciation for Mr Stanford's confidence in the people and government of Antigua and Barbuda. The Cabinet agreed to appoint a three-man Ministerial team to complete negotiations with a team from the Stanford Group on fast-track so that contracts could be settled expeditiously.

The Cabinet also appointed a small group of Senior Officers from the Ministries of Finance, Agriculture, and the Development Control Authority to ensure that there are no bureaucratic delays to the various projects.

The two sides agreed that the Prime Minister, Honourable Lester B. Bird, and Mr. R Allen Stanford would remain in regular contact throughout each stage of the negotiations and implementation of the projects to give them the highest possible oversight. Both the Cabinet and the Stanford Group expressed pleasure at the constructive and productive outcome of their meeting and described it as a landmark event in the continuing economic development of Antigua and Barbuda.

Stanford investors sue Caribbean banks to recoup losses

Investors caught up in the fall out from Allen Stanford's alleged $7bn (£4.45bn) "Ponzi" scheme are attempting to sue a number of Caribbean banks, the Caribbean financial regulator and the Antiguan government to recover money they argue is rightfully theirs.

The Bank of Antigua was taken over by the Eastern Caribbean Central Bank and its assets redistributed Photo: REUTERS

By James Quinn, US Business Editor, The Telegraph, 7:27PM GMT 17 Feb 2010

A small group of investors have filed a class-action lawsuit seeking compensation for the "unlawful seizure" of the Bank of Antigua. The Bank of Antigua was owned by Stanford Financial Group, and was the vehicle through which the investors bought what they believed to be high-yielding certificates of deposit, which US prosecutors claimed are at the root of the alleged fraud. Mr Stanford– he was stripped of his knighthood last year – was accused by US regulator the Securities and Exchange Commission (SEC) of working with colleagues to orchestrate the widespread fraud last February, since which time criminal charges have also been levelled against him. The Bank of Antigua was taken over by the Eastern Caribbean Central Bank – the regulator for eight islands in the region – shortly after the allegations against Mr Stanford came to light, and the Bank of Antigua's assets were then distributed among the EECB's five member banks, including Antigua Commercial Bank and Eastern Caribbean Financial Holdings. "The Bank of Antigua was, and remains, enormously valuable. All of that value rightfully belongs to Mr Stanford's victims," alleges lawyer Peter Morgenstern in the court filing. Although the Bank of Antigua's exact worth is not known, the lawsuit, filed in Dallas, is claimed to have included loan receivables worth tens of millions of dollars. The suit's defendants have yet to respond. Mr Stanford, who has consistently and publicly denied all charges against him, remains in a Houston federal detention facility awaiting trial next year.

Allen Stanford goes on trial for The trial of Allen Stanford, one of the most serious court cases to emerge from the financial crisis, is to start on Monday in a Houston courtroom.

Stanford, 61, is alleged to have orchestrated a $7bn (£4.5bn) scheme that promised investors high returns if they bought certificates of deposits from SIB, which is based in Antigua. By Richard Blackden, US business editor, The Telegraph, 9:13PM GMT 22 Jan 2012

Stretching from Lord's Cricket Ground in St. John's Wood to the Caribbean island of Antigua, the case has a geographic sweep to match the once global ambitions of the Texan financier. He is charged with masterminding a Ponzi scheme eclipsed in size only by that of Bernard Madoff. More than 20,000 people who invested with Stanford have yet to see any of their money returned. "They are still on a painful journey," said Marcus Wide, of Grant Thornton, the administrator responsible for liquidating Stanford International Bank (SIB). "They're getting impatient. They want to see something happen."

Stanford, 61, is alleged to have orchestrated a $7bn (£4.5bn) scheme that promised investors high returns if they bought certificates of deposits from SIB, which is based in Antigua. US prosecutors allege that the Caribbean bank managed to offload $2bn of the certificates to investors in the two years before the global financial crisis arrived in 2008. Instead of putting the money in the safe and liquid assets that SIB's marketing brochures touted, prosecutors claim that the 6ft 4in Stanford, with the assistance of a handful of his colleagues, used at least $1.6bn of it to fund an opulent lifestyle for himself.

Swiss National Bank chief Philipp Hildebrand resigns over wife's currency trade Switzerland's top central banker has been forced to resign after admitting he could not prove a controversial $500,000 (£324,067) currency trade made by his wife was done without his knowledge.

Mr Hildebrand revealed today that he had made his own currency trades earlier in the year when he sold the family house and bought a new property. By Harry Wilson, Banking Correspondent, The Telegraph, 10:52PM GMT 09 Jan 2012

Philipp Hildebrand, chairman of the governing board of the Swiss National Bank, resigned on Monday with immediate effect, saying he could not provide "conclusive proof" to disprove he had not been aware of his wife's currency trade last August.

The SNB said in a statement that it regretted "this decision and the circumstances that gave rise to it". Thomas Jordan, vice chairman of the SNB, was announced as Mr Hildebrand's interim replacement.

The controversy over the foreign exchange trade by Kaysha Hildebrand centred on its closeness to a dramatic intervention by the SNB to cap the soaring value of the Swiss franc. An investigation by PricewaterhouseCoopers for the SNB found that Mrs Hildebrand bought $504,000 of US dollars on August 15, a couple of weeks before the SNB placed a limit of the value of the franc. A subsequent sale of the dollars on October 4 netted Mrs Hildebrand, who runs an international art business, a profit of about Sfr64,000 (£45,210). Mrs Hildebrand said last week that her decision to sell the francs and buy dollars was motived by "the fact that it [the US dollar] was at a record low and was almost ridiculously cheap". In a statement yesterday, she said she had "failed" her husband in "not considering the perception of a 'conflict of interest'". "My husband is a man of the utmost integrity and I deeply regret that my actions might have led anyone to question this," she said. Mrs Hildebrand had said her decision to trade was based on her experience as a finance professional. She had formerly worked for hedge fund Moore Capital as foreign exchange trader and it was whilst working at Moore 15 years ago that she met Mr Hildebrand, who was then employed by the firm.

In a series of disclosures on Monday, Mr Hildebrand revealed that he had made his own currency trades earlier in the year when he sold the family house and bought a new property. The PwC investigation found that Mr Hildebrand had lost money on both currency trades. Sir Mervyn King, Governor of the Bank of England, said he was "saddened" by the resignation of Mr Hildebrand, who had overseen the SNB throughout the financial crisis, including its intervention to rescue Swiss lender UBS. "We all know that he is a man of total integrity, extraordinary ability and, most important of all, courage. Such people are rare. His country will miss him," said Mr King. In Switzerland, there were calls for the resignation of Hansueli Raggenbass, the head of the SNB's supervisory council, as Mr Hildebrand's departure failed to stop political anger.

Swiss prosecutors probe data theft which undid central bank chief Hildebrand Zurich prosecutors have launched a criminal investigation over the theft of data that led to the resignation of Swiss central banking chief Philipp Hildebrand.

The Hildebrands' account details were 'stolen' by a Sarasin Bank IT support employee, who took screenshots and passed them on to the People's party. By Helia Ebrahimi and Harry Wilson, The Telegraph, 8:36PM GMT 13 Jan 2012

Tough banking secrecy rules will mean prosecutors will widen their investigation to include lawyer Herman Lei, and Claudio Schmid, a member of the Zurich cantonal legislature who are alleged to be involved in whistle-blowing the $504,000 currency trade by Mr Hilderbrand's wife. The Hildebrands' account details were "stolen" by a Sarasin Bank IT support employee, who took three "screenshots", and passed them onto Switzerland's ultranationalist People's party, which objected to Mr Hildebrand's monetary intervention policies at the SNB. The news of the crackdown, reported by Bloomberg, came as the SNB announced it expected to make a profit of Sfr13bn (£9bn) for 2011. The central bank said Sfr5bn of the profit would come from the rise in its gold holdings and Sfr8bn from its foreign currency positions.

FSA fines hedge fund manager David Einhorn £7.2m for insider trading One of America's most high-profile hedge fund managers David Einhorn has been fined £7.2m by the Financial Services Authority for trading on insider information.

Mr Einhorn called the FSA fine 'unjust' and 'inconsistent with the law' but said he would pay it 'rather than continue an arduous fight'. By Jonathan Russell and Richard Blackden, The Telegraph, 11:40PM GMT 25 Jan 2012

The man who made millions shorting Lehman Brothers was fined together with his hedge fund Greenlight Capital for trading in Punch Tavern shares while in possession of insider information. In June 2009 Mr Einhorn gave instructions to sell Greenlight's entire 13pc holding in Punch minutes after being told the company was to undertake a "significant" equity raising. He managed to offload 11.7m shares in Punch, reducing its holding from 13.3pc to 8.9pc before the fundraising was announced.

The FSA calculated Greenlight avoided a loss of £5.9m after Punch's shares fell 30pc on news of the fund raising. Mr Einhorn called the fine "unjust" and "inconsistent with the law" but said he would pay it "rather than continue an arduous fight". According to Mr Einhorn he was not aware he was in possession of insider information. However Tracey McDermott, acting director of enforcement and financial crime, said this was not a reasonable belief. "Einhorn is an experienced professional with a high profile in the industry," she said. " We expect someone in his position to be able to identify inside information when he receives it and to act appropriately. "His failure to do so is a serious breach of the expected standards of market conduct." Mr Einhorn is well known on Wall Street as a financier, commentator and poker player. He shot to fame in the spring of 2008 when he used two prominent Wall Street conferences to question the financial health of Lehman Brothers.

The attack on Lehman echoed a pattern seen earlier in Mr Einhorn's career in which he would publicly question the health or practices of a company while shorting its shares. It's a practice that has won him both praise and criticism on Wall Street. He founded Greenlight in 1996 with help of an investment by his parents. He hit the headlines in the US again last summer after trying to buy a stake in The New York Mets, the city's struggling baseball team. The deal eventually collapsed after the Mets' owners refused to give him the option of becoming the majority owner. Away, from Wall Street, Mr Einhorn is also a skilled poker player and has made more than $700,000 from the game, according to Pokerpages.com. Although best-known for shorting shares, Greenlight typically has bigger long positions. It owns stakes in Apple and Microsoft, according to its latest filing with US regulators.

FSA fines two more over Greenlight insider trading Two more individuals connected to US hedge fund Greenlight Capital have been fined over a multi-million pound insider-dealing case. Greenlight founder David Einhorn was fined £7.2m together with his fund for insider dealing. By Jonathan Russell, The Telegraph, 6:44PM GMT 27 Jan 2012

The City regulator fined Alexander Ten-Holter, Greenlight's compliance officer, £130,000 and JP Morgan trader Caspar Agnew £65,000. Both individuals were censured for failing to either identify or ask questions about Greenlight's trading in Punch Taverns. The hedge fund sold significant tranches of Punch shares knowing the company was about to raise money, a move almost certain to drive Punch's shares down. Despite being told by a Greenlight analyst that the hedge fund had just spoken to Punch management and knew "secret bad things", Mr Ten-Holter "took no steps to satisfy himself that the order was not based on inside information," according to the FSA. The regulator said Mr Agnew also became aware that Greenlight may have been trading on inside information but failed to act. Mr Agnew said he thought Greenlight was just "fortunate" in its timing. Greenlight founder David Einhorn was fined £7.2m together with his fund for insider dealing. The fine's size and action against the compliance officer shows a ramping up of FSA enforcement.

Tracey McDermott, acting director of enforcement and financial crime, said: "Tackling market abuse and insider dealing is not just an issue for the regulator. Compliance professionals and staff on sales and trading desks play a key role in assisting the FSA in detecting and preventing market abuse."

RBS chief Stephen Hester to waive £1 million bonus Stephen Hester, the chief executive of Royal Bank of Scotland, has bowed to mounting public anger and agreed to give up a £1 million bonus.

Steven Hester agreed to give up a £1million bonus Photo: Getty Images By James Kirkup,, Deputy Political Editor, The Telegraph, 9:00AM GMT 30 Jan 2012

Mr Hester’s move emerged on Sunday night, just hours after it had been announced that Labour was to trigger a Commons vote on his controversial award. Ministers welcomed the decision, which may help contain the Coalition’s growing political embarrassment over executive pay at state-owned banks.

It may also raise questions about Mr Hester’s long-term future at RBS, which he has run since it was rescued by the taxpayer in 2008. Mr Hester was said to have been concerned he was becoming a “pariah”. City sources suggested last night that he and members of the bank’s board had considered resigning because of the growing row over his remuneration. He had been in line for a bonus of shares worth almost £970,000, on top of his £1.2 million salary. A source close to the bank said: “Stephen took this decision in the light of mounting political pressure.”

George Osborne, the Chancellor, last night welcomed Mr Hester’s decision and called for him to remain in his post. “This is a sensible and welcome decision that enables Stephen Hester to focus on the very important job he has got to do, namely to get back billions of pounds of taxpayers money that was put into RBS.” Mr Hester’s proposed bonus had triggered a political row as Labour said no bonus could be justified because RBS is failing to meet lending targets. Although the Government owns 83 per cent of RBS, it remains a public company run by an independent board of directors. Ministers had said they were unable to block the bonus award but called for Mr Hester to forgo the payment voluntarily. That position drew political attacks on David Cameron. Ed Miliband, the Labour leader, said Mr Hester had “done the right thing”. He added: “It is a shame out of touch David Cameron did not realise he should also do the right thing.” Lord Oakeshott, a Liberal Democrat peer, last night said Mr Hester’s decision was “better late than never” and put it down to pressure from the Lib Dems and Labour. “I’m glad that eventually Stephen Hester has seen sense and seen the outrage of most people in this country and Lib Dems who have been complaining bitterly about this for weeks,” he said.

Sir Philip Hampton, the chairman of RBS, indicated over the weekend that he will waive an even larger bonus this year. Earlier yesterday, Iain Duncan Smith, the Work and Pensions Secretary, said ministers would be very pleased if Mr Hester followed his chairman’s example. “It’s for him individually to make a decision about that. As a member of the Government I don’t have a collective opinion on that, but I must say, nobody would be happier than the Government if of course he took such decisions.”

Mr Hester’s decision came hours after it was announced that Labour planned to trigger a vote in the Commons, offering MPs the chance to vote to condemn the bonus award. Labour sources had said the vote would demonstrate the Prime Minister’s “failure of leadership” over pay at RBS and give MPs a chance to “show the public’s disapproval of Mr Hester’s bonus”. There could be more embarrassment yet to come for ministers over RBS because as well as his bonus, Mr Hester is also potentially eligible for an award under a long-term incentive plan, worth as much as £4.8 million. It was not clear last night if his entitlement has changed. Danny Alexander, the Chief Secretary to the Treasury, earlier said that ministers were effectively unable to block the bonus. The bank’s directors had decided to award Mr Hester his bonus, and Mr Alexander said that intervening in that process would have damaged the bank and cost the public more money.

RBS shares lost around £350m of their value on Monday, sliding 2pc to 27.16p.

Stephen Hester says bonus row damaged him and RBS Stephen Hester, chief executive of Royal Bank of Scotland, said he would forgo bonuses and a knighthood in return for a "quiet life".

Mr Hester said that given the choice between a bonus from the bank or a knighthood, he would prefer an end to the controversy over his running of RBS. By Harry Wilson, Banking Correspondent, The Telegraph, 11:12PM GMT 08 Feb 2012

Speaking for the first time in the wake of the political storm that led him to give up a £963,000 annual bonus, Mr Hester said the controversy had not only "damaged" him, but also the taxpayer- backed bank. "I have had no feelings of negativism about their [politicians] motivations. Of course, in the political rough and tumble it doesn't come out like that and in this case it has damaged RBS and it has damaged me," he said.

Mr Hester admitted that given the choice between receiving a bonus from the bank or accepting a knighthood, he would prefer an end to the controversy over his running of RBS, which is 83pc owned by the state. "My favourite choice would be to succeed with RBS and have a quiet life, but that may be an oxymoron. First of all I have to avoid the jeers, before I worry about the cheers. As has been well-demonstrated, having any kind of honour is no guarantee of a quiet life or enduring esteem," he said. Last week, Mr Hester's predeccessor Fred Goodwin, was stripped of his knighthood after a public campaign to remove the honour.

Discussing the furore surrounding the banking industry, Mr Hester said he had been saddened by recent events. "I don't like and find sad the intense personal vilification that is part and parcel of the media and political dialogue of this country, not just for Fred, but for people in general. It's been uncomfortable for me in recent days and I don't think it helps us and I feel sad about that," he said. RBS is due to report its full-year results in two weeks, and Mr Hester said he intended for the first time to release details of the goals he set for the bank on taking charge in November 2008 in the immediate aftermath of its £45bn state rescue.

However, Mr Hester warned the events of recent weeks had made it more difficult for him to run the bank successfully and that Government and opposition politicians need to "recommit" to how the business should be run. "What's just happened makes it tougher. Everyone has to either recommit, that we want RBS to compete successfully, or we have to come up with a Plan B," he said. In a memo to staff on Monday, Mr Hester said RBS's total losses since 2008 totalled £38bn against £33bn of profits made by the bank over the same period. Mr Hester said that without these profits the taxpayer would almost certainly have faced a much larger bill than the £45bn injected into it. "If we didn't have that money [£33bn]. If the investment bankers hadn't generated £10bn of that money, the state would have had to put it up, or it would have been some big collapse. We have got to generate those profits, it's going to go in more losses first, but as we defuse that risk time bomb, those profits will be available to investors," he said. Mr Hester admitted RBS and the Government had a "big job of work" to convince investors to put money into the bank, particularly given the recent storm over bonuses.

Fred Goodwin: profile of the former chief executive of RBS Fred Goodwin rose from one of the most deprived council estates in the country to become one of Britain's leading bankers. Public anger over his role in the Royal Bank of Scotland's near-collapse in 2008 and his attempts to conceal an affair with a colleague using a super-injunction have resulted in the Queen, on the advice of Whitehall officials, annulling his knighthood.

Sir Fred Goodwin rose from one of the most deprived council estates in the country to become one of Britain's leading bankers, with a formidable reputation to match. Photo: PA 5:44PM GMT 31 Jan 2012 The Telegraph

Such was the ruthlessness with which he cut costs and conducted takeover deals - he ordered 18,000 job cuts after the take over of Nat West - that he earned the nickname 'Fred the Shred'. But he had not followed the traditional path of the successful Scottish banker – public school, Edinburgh, Oxbridge. Rather, he grew up in Ferguslie Park, Paisley, and went to the local grammar school. His father was a socially ambitious engineer who made enough money for the family to move to a semi-detached house in Glasgow.

After studying law at Glasgow University, Goodwin's first job was as a chartered accountant with Touche Ross. He handled the liquidation of the discredited Bank of Credit and Commerce before going on to run the Clydesdale and Yorkshire banks. After presiding over more than 20 acquisitions Fred, 53, a man who enjoyed picking through minutiae, gained a reputation in the City for being hooked on doing deals - a charge he denied, but he did relish the plaudits which followed when he propelled RBS on to the global stage.

Never one for networking Fred always said he had "no time" for cynics, spectators or dead wood and, while trusted by the Prime Minister Gordon Brown, he never discussed his politics. He was lauded by his peers, named global business leader of the year by Forbes magazine, and he was knighted by Tony Blair in 2004. But publicly, he remained largely anonymous. He did little to court the media, rarely giving interviews, and made very few speeches. Only RBS's sponsorship of Formula One racing and the Six Nations rugby required him to mingle with the great and the good. That all changed last October, when the blame for the near-collapse of RBS during the banking crisis was placed squarely on his shoulders. His departure last November was a non-negotiable condition of the Government ploughing £20billion of taxpayers' money into the bank to replenish its capital. In 2011 John Hemming MP discloses in the House of Commons that Fred has obtained a "super- injunction" from the courts banning the publication of certain information about him, or even revealing the nature of that information. The very existence of the injunction can only be acknowledged because Mr Hemming's comments are protected by Parliamentary privilege. A senior judge's refusal to quash the injunction resulted in Fred Goodwin admitting that he had an affair with a senior colleague at the Royal Bank of Scotland in the run-up to its near collapse and concealed the sexual relationship from colleagues, via a super-injunction, fearing their disapproval and that it would damage his career.

Continued criticism of his role in the bank's near collapse and public anger at the way he was allowed to keep his title resulted in the Queen, acting on advice from Whitehall officials, annulling his knighthood.

COMMENT

The lynch mob is still baying for bankers' blood We can’t move on until we expose the causes of the financial crash – and shame the culprits

Why does the Coalition ignore the calls for a new, rigorous, independent supervisory board inside the Bank of England, which is headed by Sir Mervyn King (above,) to replace the all-too-cosy court of the Bank? Photo: PA By David Ruffley is MP for Bury St Edmunds, The Telegraph - 8:49PM GMT 16 Feb 2012

The public clamour to strip Stephen Hester of his bonus, and Fred Goodwin of his knighthood, is said to betray an anti-business, lynch- mob mentality. Yet why, a full three years after the Government rescued the banks, is the public still so very angry?

Public confidence in free enterprise is being undermined because no bank or regulator appears to have been held properly accountable for the recklessness and incompetence that brought the UK financial system to its knees. No senior banker has appeared in a criminal or civil court. No regulator has been sacked. No auditors have been struck off. No credit agencies closed down. Rewards for success, yes, but reward for failure? Forget about the ragbag of Leftists cluttering up St Paul’s Cathedral, this is what hard-working taxpayers who play by the rules think.

In the United States, the bastion of free market capitalism, Congress set up the National Commission on the Causes of the Financial and Economic Crisis in the United States, dubbed by some a “truth and reconciliation commission”. The commission comprised 10 non-politicians expert in financial markets, regulation and consumer protection, and appointed by the Democratic and Republican leadership. It held hearings with 700 witnesses, reviewed millions of pages of documents, and drew on the findings of Congressional committees, journalists, academics and legal investigators. It identified dramatic breakdowns in corporate governance and lapses in regulatory oversight. Bankers, the , the Federal Deposit Insurance Corporation, the SEC, the ratings agencies, the US Treasury – none was spared. The commission concluded: “The greatest tragedy would be to accept the refrain that no one could have seen this coming and thus nothing could have been done. If we accept this notion, it can happen again.”

What is striking about Britain is how little real truth and reconciliation there has been. Lord Turner, the chairman of the Financial Services Authority, made the laughable decision to publish just a one- page document into the Royal Bank of Scotland failure. It was only the intervention of the Treasury Select Committee that forced the publication of last December’s 500-page report and Lord Turner’s admission: “I wish, back in 2009, I had realised that the failure of RBS was such a big thing that we should have a public accountability report.” Unbelievably, the FSA has not yet announced that there will be a report on that other banking basket-case, Lloyds/HBOS, where it has been alleged that a government minister encouraged the ill-fated merger at a summer drinks party.

If we are ever to draw a line under what went wrong in 2008 and 2009, we need to have a comprehensive inquiry. Before the public can move on it needs answers to some serious questions. First, should anyone have been sent to jail? Only the FSA report on RBS has bothered to touch on this question, which the man in the street asks on a regular basis. It concluded that poor commercial judgment was not illegal, unless it could be proved that no reasonable person in possession of the same information could ever have reached the same conclusion.

A Conservative MP close to George Osborne wants to introduce a new law by which banking executives would be liable for “gross negligence”. And the FSA has floated the idea of making a chief executive liable for the actions of his or her underlings. In my view, creating new offences like these sends the message that Britain is not open for business. But this is a legitimate subject for public debate.

Second, which regulators were asleep at the wheel? It is astonishing that the Governor of the Bank of England will chair the new Financial Policy Committee and Prudential Regulation Authority, and that the chief executive of the latter will be Hector Sants, who was the chief executive of the FSA in 2008. These people were on the bridge when the ship hit the iceberg last time, yet they are still going to run the new supervisory bodies. The notion that risk had been diversified by financial innovation was conventional wisdom among regulators and bankers up to the crash. It turned out the opposite was true. Groupthink set in on an epic scale. So why does the Coalition ignore the calls for a new, rigorous, independent supervisory board inside the Bank of England to replace the all-too- cosy court of the Bank, which values accountability so much that it recently refused to publish its minutes from the time of the RBS crash?

Third, were auditors at the big banks incompetent? Or did they not query the accounts for fear of starting a run on the bank? Either way, we need a new statutory obligation on bank auditors to inform the Bank of England of any concerns they have. And what about the crucial flaws in international accounting standards? These allow banks to post purely paper profits and pay out huge bonuses as a result – to the detriment of ordinary shareholders.

Public support for free enterprise has been damaged by the financial crisis and will not be truly restored until we know what went wrong and who was responsible. Bankers did not cause the crisis on their own. The hue and cry over bankers’ bonuses obscures the fact that failed regulators and auditors have got off lightly. For those of us who believe in free enterprise and rewards for success, not failure, a truth and reconciliation commission cannot come soon enough.

Japanese prosecutors raid Olympus headquarters Japanese prosecutors raided the headquarters of Olympus on Wednesday as part of an investigation into the cover-up of massive losses at the camera and medical equipment maker.

Former Olympus President Michael Woodford blew the whistle on what he thought was strange and excessive spending Photo: Reuters AP 6:19AM GMT 21 Dec 2011 – The Telegraph

Japanese prosecutors confirmed the raid, which was also broadcast on national television. A trail of dark-suited officials were shown marching solemnly into the downtown Tokyo office building. Olympus said it would fully cooperate with the investigation by prosecutors, police and financial authorities. "We apologise deeply again for the great troubles and worries we have caused our shareholders, investors, customers and others," it said in a statement. NHK TV said the suburban home of former President Tsuyoshi Kikukawa, suspected of helping to orchestrate the cover-up, was also raided.

The deception at Olympus dates back to the 1990s and involved an elaborate scheme to hide 117.7bn yen (£965m) in investment losses. It only came to light in October when then President Michael Woodford blew the whistle on what he thought was strange and excessive spending. Woodford, a Briton, had been a rare foreigner to head a major Japanese company. The scandal has raised serious questions about corporate governance in Japan, and whether major companies are complying adequately with global standards. Woodford was fired after he confronted the company's board of directors with his doubts. In recent weeks, he has been trying to stage a comeback to the top, by appealing to shareholders, employees and others that his return will work to clean up Olympus.

Woodford had questioned exorbitant fees for advice on the acquisition of British medical equipment maker Gyrus Group and other expensive acquisitions in 2008. Woodford is demanding the resignation of the entire board, including President Shuichi Takayama, who replaced him and initially declared in a news conference that the spending was legitimate. The battle over who will lead the camera and medical equipment maker and its 40,000 employees could come to a head at the next shareholders' meeting. A date has not been set. The new Olympus management has expressed a willingness to consider alliances in an effort to get its back in order.

Olympus delayed reporting earnings because of the accounting irregularities, but met the stock exchange's deadline earlier this month, averting automatic removal from the market. The company could still be delisted if the criminal investigation discloses major misbehaviour. In the past, erring executives have rarely got prison time for their roles in shady bookkeeping. Covering up for investments that went sour after the 1980s "bubble" economy burst was so widespread in Japan that a special term describes the practice, "tobashi". Olympus stock plunged amid the scandal but has recouped some of those losses in recent weeks. On Wednesday it was trading down 1.5pc at 1,049 yen.

Olympus executives arrested in accounting investigation The accounting scandal engulfing Japanese electronics giant Olympus has seen its first arrests with individuals including former chairman Tsuyoshi Kikukawa detained by the police.

Michael Woodford, former chief executive of Olympus, with former president Tsuyoshi Kikukawa, when he was appoined as CEO. Photo: AP By Jonathan Russell, Assistant City Editor, The Telegraph, 6:53PM GMT 16 Feb 2012

Mr Kikukawa was among seven people arrested on Thursday in co-ordinated action by Japanese police investigating the $1.7bn (£1.1bn) accounting scandal. As well as Mr Kikukawa the individuals arrested include the company's former executive vice president, Hisashi Mori, and former auditor, Hideo Yamada and former Nomura bankers Akio Nakagawa and Nobumasa Yokoo. All of the individuals were arrested in connection with the accounting scandal uncovered by former chief executive Michael Woodford.

Despite initially denying any wrongdoing and sacking Mr Woodford, Olympus later admitted using "advisory fees" to cover up previous year losses. The company is currently suing 19 former and current executives. Olympus is also under investigation in the US and UK.

In a recent market update the company said it was forecasting a $410m full-year loss due to large impairment losses in its ailing camera business and tax asset writedowns. However the company said it may not have to raise any more cash. There has been widespread speculation that problems uncovered during the investigation could lead to disposals or a takeover. Olympus will reveal more about the situation the company is in at its AGM in April. Most of the board are expected to resign at the meeting. Shareholders will vote on their replacements.

Olympus panel clears auditors in accounting scandal Former auditors of Japanese electronics giant Olympus, KPMG and Ernst & Young, have been cleared of any wrongdoing in the $1.5bn (£977m) accounting scandal gripping the company.

The Olympus accounting scandal came to light after the British former chief executive Michael Woodford blew the whistle on the payments. Photo: Geoff Pugh By Jonathan Russell, The Telegraph, 6:37PM GMT 17 Jan 2012

An independent panel set up to investigate multi-million dollar payments used to cover up previous year losses said the accountants were not to blame. Instead the panel found five former directors culpable for the accounting scandal. The finding means neither Ernst & Young or KPMG will face any legal action from Olympus. Instead the five directors could face writs designed to claw back some of the $110m the company estimated it lost due to the accounting problems. The company announced yesterday that it had filed suits at the Tokyo District Court against the individuals, all of whom worked on auditing the accounts on an individual basis rather than for one of the audit firms. Last week Olympus announced it was suing 19 current and former directors including former president Shuichi Takayama. The accounting scandal came to light after the British former chief executive Michael Woodford blew the whistle on the payments. Although the company initially denied any wrongdoing it later admitted trying to cover up prior year losses.