The Cabinet Office has let slip that the Knighthood conferred upon Fred Goodwin as a Knight Bachelor has been cancelled and annulled.
The official announcement will appear shortly in the London Gazette and the decision, not normally publicised in advance, has been taken on the advice of the little known honours Forfeiture Committee.
Mr Goodwin has been stripped of his title for brining the honours system into disrepute by the sheer “scale and severity” of the impact of his actions as chief executive officer of Royal Bank of Scotland (RBS).
A statement from the Cabinet Office explains: “In 2008 the Government had to provide £20 billion of new equity to recapitalise RBS and ensure its survival and prevent the collapse of confidence in the British banking and payments system.
“Subsequent increases in Government capital have brought the total necessary injection of taxpayers’ money in RBS to £45.5 billion.
“Both the Financial Services Authority and the Treasury Select Committee have investigated the reasons for this failure and its consequences.
“They are clear that the failure of RBS played an important role in the financial crisis of 2008-9 which, together with other macroeconomic factors, triggered the worst recession in the UK since the Second World War and imposed significant direct costs on British taxpayers and businesses.
“Fred Goodwin was the dominant decision maker at RBS at the time.
“In reaching this decision, it was recognised that widespread concern about Fred Goodwin’s decisions meant that the retention of a Knighthood for ‘services to banking’ could not be sustained.”