Sir George on Robert Peston: he’s a Treasury puppet and it’s a disgrace

November 16th, 2008

Sir George Mathewson clearly doesn’t think too highly of the BBC’s business editor Robert Peston, who was lampooned in Silly Money, tonight’s Bremner Bird & Fortune programme. In an interview with Gillian Bowditch (Mathewson: Riding to the rescue of HBOS) published in today’s Sunday Times, the former chairman and chief executive of the Royal Bank of Scotland who retired from RBS at the age of 65 in April 2006, said:

“I think it is disgraceful that everything the Treasury knows goes straight to Peston. It’s shocking. They are telling him everything. He has become an instrument of the Treasury now. He is not an independent reporter any more. He is in the pay of the Treasury.”

Mathewson was echoing the views of many of the people I have spoken to on this topic.

The Serious Fraud Office is still deliberating over whether to grill Peston about the sources of his “scoops”, a move that was instigated by Conservative MP Greg Hands and backed by the shadow chancellor George Osborne. And in the House of Lords last Tuesday, Lord Forsyth of Drumlean, the former Scottish secretary, demanded that, at the very least, a Commons select committee should be established to quiz Peston.

Mathewson is, along with Sir Peter Burt the former boss of Bank of Scotland, seeking to depose the pair of incompetents who have as good as destroyed HBOS, Lord Dennis Stevenson and Andy Hornby.

Given that the latter pair “capitulated” on September 16th, effectively admitting they had so damaged HBOS it has no future as an independent bank, Mathewson and Burt believe the bank deserves a second chance. They are, in my view, right to do so. Initially, they want to install themselves as chairman and chief executive and of course to block the takeover by Lloyds TSB.

Mathewson and Burt argue that the Lloyds deal is bad news for HBOS shareholders, its employees and probably also its customers,  and that that the financial backdrop has changed considerably since the deal was first struck on September 18th. I believe the only reason they are not being given a fair hearing is that government’s spin cycle is so powerful.

Back in September,  prime minister Gordon Brown was still so shellshocked by the Northern Rock experience he was prepared to cointemplate virtually anything short of felony — including waiving competition law — to permit the creation of an anti-competitive Superbank that will cause some 30,000 to 40,000 job losses and restore the UK banking oligopoly.

In the interview, Mathewson said that the strategy being employed by Brown and Lloyds TSB (and by extension by Peston – and indeed their other mouthpieces in the UK media) is simple scaremongering, aimed at terrifying HBOS shareholders into submission. He said that he cannot comprehend why Brown, a Scot, is so antipathetic to the proposal to keep HBOS independent. Mathewson says:

“In order to facilitate the Lloyds TSB transaction they’ve put the fear of God into the HBOS shareholders. That’s the strategy, government strategy, as well as Lloyds TSB’s strategy … Gordon is using the fear tactic. That’s what he always falls back on.”

In his interview with the Sunday Times Mathewson also argued that top bankers’ salaries are now too high, saying that he only ever got one bonus in his career at RBS and this was for £500,000 in the year of the NatWest takeover.

“I think salaries are too high. The people who can do these jobs are thin on the ground but those salary consultants and all the PC stuff that goes on round about it has put salaries up, not down.”

He also said he was appalled at what has happened to his alma mater, RBS, which is now to become a nationalised institution. Mathewson, 68, suggested that under his successor as chief executive, Sir Fred Goodwin, the bank was doing too much trading on its own account.

“I think it is absolutely tragic. I’m sad for the ordinary people working in the business. RBS was a fabulous place to work. It had the highest staff approval levels in the world. For a while now it’s been miserable. It’s horrendous.”

Interestingly Peston has at least one defender.

Lord Peston, a Labour peer and emeritus professor of economics at Queen Mary College, said in the Lords in response to Forsyth:

“I want merely to point out, in reference to a first-class journalist who gets his stories perfectly legitimately, that we do not need an inquiry. We just need to have excellent journalists doing their job properly.”

Might these two be related by any chance?

Short URL: https://www.ianfraser.org/?p=704

Posted by on Nov 16 2008. Filed under Blog. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

2 Comments for “Sir George on Robert Peston: he’s a Treasury puppet and it’s a disgrace”

  1. […] to the Treasury, Lloyds TSB and HBOS for my liking, as I have already alluded to in this blog (see Sir George on Robert Peston: he’s a Treasury puppet and it’s a disgrace and Peston’s credibility open to […]

  2. […] Sept 17th, 2008: News that Lloyds TSB and HBOS are in “advanced talks” is leaked to the BBC’s business editor Robert Peston. The news, confirmed by both banks later that day, briefly reverses the collapse in HBOS’s share price. However many stock market observers are surprised by the leak and the banks’ failure to suspend their shares. See Sir George on Robert Peston […]

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