Why we had to know about ‘stupid’ Fred the Shred’s affair: Peer

Lib Dem Lord Oakeshott, who tabled yesterday’s topical question in the House of Lords, said it was necessary to know what was going on at the top of Royal Bank of Scotland in the run-up to and during its collapse.

Sir Fred, nicknamed Fred the Shred, was accused of having an extra-marital affair at the time RBS imploded and needed rescuing by taxpayers.

His super-injunction was originally revealed by Lib Dem MP John Hemming in March, when it emerged the gagging order obtained by Sir Fred was so strict it banned references to him as a banker.

The order was partially lifted by the High Court yesterday after Lib Dem peer Lord Stoneham, speaking for Lord Oakeshott, used parliamentary privilege to name Sir Fred in relation to the alleged affair in the Lords.

“Every taxpayer has a direct public interest in the events leading up to the collapse of the Royal Bank of Scotland, so how can it be right for a super-injunction to hide the alleged relationship between Sir Fred Goodwin and a senior colleague?” he said.

Lord Oakeshott today told BBC Radio 4’s Today programme: “I’m very concerned the whole story should be out there, should be properly investigated and we should all learn the lessons of the collapse.

“This was the biggest corporate crash in British history.”

He said he would not consider revealing details of other super-injunctions, such as those banning reports of footballers’ and actors’ alleged affairs.

He said: “I couldn’t care less if footballers are playing away. This is quite different, this is not the question of footballers’ sex lives - I’m not interested in that.

“This is a major, overwhelming public interest.”

He branded secrecy around the former RBS chief executive “stupid”, saying the alleged affair may be crucial to a Financial Services Authority probe into RBS’ collapse.

Lord Oakeshott added: “I wanted to make sure the regulator could look at this.

“If this is not overwhelming public interest to get to the bottom of what happened when the Royal Bank of Scotland collapsed causing billions (of pounds) of cost to taxpayer and many thousands of families lost their jobs - I can’t conceive of a more overwhelming public interest.”