The Royal Bank of Scotland's failure, which has led to the bank effectively being nationalised by the UK Government to save it, and save its customers, was nothing to do with either Sir Fred Goodwin or the Bank's 'takeover too far' of the Dutch Bank ABN Amro, so says Douglas Mill, former Law Society Chief Executive and school friend of Sir Fred Goodwin.
Douglas Mill - it wasn't the Bank or Sir Fred’s fault, it was the lack of governance & control !
Douglas Mill, said in a BBC Scotland interview, which highlighted the alleged failures of Sir Fred Goodwin, whom some newspapers have dubbed "The World's worst banker" :"Well scapegoating is the right expression.".
Douglas Mill would know all about scapegoating, and how to avoid it, as he did for around eleven years as Chief Executive of the Law Society of Scotland, who interfered & intervened in just about any case involving crooked lawyers which had the possibility to bring changes to the way solicitors were regulated by the Law Society.
Douglas Mill, staggeringly went on in the interview to blame the Royal Bank of Scotland's huge losses & failures on the financial markets on poor regulation of the Banking sector !
Douglas Mill went on in usual form : "The real failures here are failures of financial services regulation and that extends beyond the Royal Bank.
The real failures here are failures of lack of governance and lack of control in the whole banking sector not just the Royal Bank again its easy to be wise after the event but scapegoating Fred isn't going to address the problems here."
An amazing outburst indeed, from Mr Mill, who tirelessly campaigned against any strengthening of regulation against the legal sector in Scotland, and whose aims to prevent consumers being protected by increased safeguards & independent regulation of Scottish legal services are still being carried out today by the present Justice Secretary, Kenny MacAskill, who himself said on video in the past, he would also protect lawyers from anything or anyone …
You can read an earlier article on how Mr MacAskill carries on Douglas Mill's 'traditions' of protecting the worst elements of Scotland's legal profession here : Justice Secretary rejects independent regulation of lawyers and public right of choice in legal services market
Indeed, it was, as you will all recall, Douglas Mill who infamously once threatened the Scottish Parliament and the previous Scottish Government with legal action if legislation was passed in the Scottish Parliament to protect consumers and strengthen regulation against Scottish solicitors.
Douglas Mill threatens to sue Parliament & Govt : ‘Holyrood in Solicitors’ sights by Ian Fraser
I wrote about Douglas Mill’s court challenge threat to Parliament here : Law Society of Scotland threatens Court challenge against Scottish Executive over LPLA legal reform Bill
We must also not forget this is the same Douglas Mill who famously scrapped with John Swinney, the Cabinet Secretary for Finance, in front of Holyrood's Justice 2 Committee, where Mr Swinney, then in opposition, exposed the secret memos of Mill himself which eventually led to the end of Mill's career at the Law Society after the video coverage of the event was posted to You Tube.
You can read more about the Holyrood confrontation between Douglas Mill & John Swinney here : Law Society boss Mill lied to Swinney, Parliament as secret memos reveal policy of intervention & obstruction on claims, complaints.
In the memos, it was revealed by John Swinney that Douglas Mill had been, and was still engaged in a bitter & protracted campaign against some of Mr Swinney's constituents to prevent them from obtaining access to legal services and financial settlements in long running claims against several of Scotland leading legal firms, which Mr Mill, and the Law Society's insurers Marsh UK, intended to delay and destroy at any cost.
It is worth noting that every single claim and complaint against 'crooked lawyers' which the now discredited ex-Law Society Chief Douglas Mill personally intervened in, ultimately failed to be resolved, and the particular case which Mr Swinney raised before the Justice 2 Committee along with Mill's own memos, also remains unresolved and without settlement.
Career ending video : Douglas Mill contradicts his own secret memos released by John Swinney during Justice Committee investigation
You may all be wondering why someone such as Douglas Mill may blame a lack of regulation of the banking sector as the cause of its catastrophic failure ?
Well, wonder no longer, as the banking sector, such as it used to be, went hand in hand with the legal sector, gaining billions of pounds of business & finance in Scotland from solicitors who themselves used clients funds and a myriad of other less than open financial deals with the banks, using clients money to gain personal finance deals and deals for their legal firms on spectacularly low interest rates which ordinary consumers had to prop up through exhorbitant costs of poor legal services and thousands of cases of lost clients funds each year which the Law Society under Douglas Mill did nothing about.
Interestingly, the same failures of regulation which Douglas Mill claims let down his friend, Sir Fred Goodwin, were the same kinds of regulation Mill actually fought against being implemented on the Law Society of Scotland, such as in the case where Douglas Mill claimed in an interview with Business Journalist Ian Fraser, that the Financial Services Authority would not allow any independent oversight of such things as the infamously corrupt Indemnity Insurance arrangements for Scottish solicitors known as the "Master Policy" which has led to some of the worst cases of corruption involving insurance in Scotland for decades.
It turned out the FSA were quite happy there would be independent regulation of the Master Policy, and I wrote some more about that issue here : Chief Executive of the Law Society of Scotland branded a liar after FSA denies claims of intervention to block complaints body.
You can read more about the Master Policy and how Douglas Mill as Chief Executive of the Law Society and his staff at ‘Client Relations’ implemented his 'policy for protection' of solicitors against claims & complaints here : The Corrupt Link Revealed - How the Law Society of Scotland manages client complaints & settlements.
More can be read about the Master Policy HERE
Perhaps what we learn from this story is that the banking world and legal world do tend to go hand in hand, when it comes to business, and scandals …. so both worlds need a fairly strong dose of independent regulation with effective policing of their activities, rather than the hands off approach which Mill and his kind have preferred over the years.
Mr MacAskill – adjust your policies accordingly, or step aside for someone who can protect the public, rather than simply protect the professions …
35 comments:
lawyers and bankers have always been allowed to get away with murder
NOW ITS TIME TO STOP THEM AT THEIR TRICKS
What a nice chap !
I hope I can count on my ex school chums to defend me when I fuck up the banking system and everyone's savings !
pension of 8.37 million ??
how is that possible and how much does Mill get ??
Good shot and you are spot on about the bloody finance deals mister !
"the real failures here are failures of lack of governance and lack of control in the whole banking sector not just the Royal Bank"
From the man who gave us you,the slcc et all - he has no room to speak.
I take it the BBC were being sarcastic in locating Douglas Mill to speak for someone.What happened to the rest of Goodwin's friends ?
He is a "Sir" after all.Did no one else want to speak up for his work at the RBS other than Mill?
Bottom of the barrel stuff if you ask me.
some of the others who think the sun shines out of Sir Fred Goodwin:
http://thescotsman.scotsman.com/scotland/Buck-stops-at-Fred-but.4895754.jp
Buck stops at Fred, but where was the board?
Published Date: 21 January 2009
THIS time last year, Sir Fred Goodwin was chief executive of the RBS Group and was being acclaimed as the 'world's best banker'. This week, he has been pilloried as 'the world's worst banker' after overseeing the biggest loss in British corporate history. Hamish Macdonell,asked ten leading Scots whether he deserves such vilification.
JENNY DAWE leader of Edinburgh city council:
"As a civic leader, I can only comment on the contribution that the Royal Bank of Scotland made to Edinburgh under Sir Fred's leadership.
"Over many years, the Royal Bank has been involved in creating the prosperity and quality of life that Edinburgh residents enjoy: providing employment, generating wealth and supporting some of our most iconic events. The Royal Bank has made a valuable contribution to the fantastic quality of life Edinburgh offers. The decision of the bank, under Sir Fred's leadership, to retain its global HQ in Edinburgh was particularly welcome.
"There have obviously been changes at the Royal Bank in response to recent events. What is important now, for the bank's staff and customers particularly, is that we look to what will happen under the new leadership."
SIR GEORGE MATHEWSON former chairman of the Royal Bank of Scotland: "
"There have been many actors who have failed to play their part properly. The embodiment of the crisis has become personalised in him (Sir Fred], but the ratings agencies were culpable, and governments were culpable, particularly in America with the attitude everybody should have their own house. It has not just happened because of a few over-egotistical bankers.
"I know the 'Fred the Shred' nickname has always been a bit of a myth. Fred used to joke that the reason he was nicknamed 'Fred the Shred' was that his name did not rhyme with 'charming' or 'articulate'. I did not see him as being responsible (at RBS] for large lay-offs. Fred's a guy of huge abilities, very clear-thinking and able to communicate what he wants to the front line."
ROGER LAWSON Representative of the UK Shareholders Association:
"I am not particularly critical of Sir Fred. In essence, the company dropped through the credit crunch, and what caused that was the US subprime crisis.
"Possibly, RBS could have been criticised for investing in such assets but I doubt if it was just Sir Fred Goodwin's policy to do that; clearly, the rest of the board felt it was a good idea, too. In this kind of case, you don't just have one person making the decisions.
"It's very easy to personify your anger in cases like this and pick on one particular director and say they are the problem, but I don't think its particularly productive to do that.
"If you want to stop these problems occurring in the future, the key is regulation. These companies were allowed to invest in these assets because regulation was inadequate."
DAVID BELL professor of economics at Stirling University:
"Is Sir Fred to blame or is he being made a scapegoat? The truth is certainly somewhere in between. Clearly, the climate played some part in the general bullishness of RBS's expansion, which now turns out to have been misplaced.
"Sir Fred was, though, identified quite closely with the ABN Amro deal and perhaps that was a deal too far and that has perhaps done for his reputation. Given that RBS had substantial interests in the United States, it was important for Sir Fred to have intelligence, particularly on the state of the housing market in the US. Other people were flagging that up, so there might have been a breakdown in communication there.
"If it goes well, the managing director or the chief executive takes the credit, so some of the blame has to stick to him, too."
DAVID WATT Executive Director of the Institute of Directors in Scotland:
"The person at the top of the tree takes the blame, and with some justification.
"However, I do think this is not just about banking, it's about society.
"We have all been pushing for more money, more profits and this has pushed a company which made £9 billion profit one year to make more the next. That is inevitably going to involve it getting into more risky business but we have all been pushing that way, wanting more from our pension funds, willing to take on more debt and taking more risks, too.
"I think the responsibility falls on all of us: we are all willing to take more risks and to spend money we haven't got.
"I think there is personal and public culpability as well."
IAIN GRAY Scottish Labour leader:
"The media is obsessed with celebrity and when RBS was riding high, Sir Fred Goodwin was hailed as a hero.
"Likewise, the world of finance had come to regard its chief executives as 'masters of the universe' and reward them to a ridiculous degree. So it is hardly surprising in such a frenzied culture that when things go wrong, a scapegoat is needed. But the collapse of RBS was not down to one man. There were serious flaws in the system that extend far beyond Sir Fred, RBS and Scotland.
"However, lessons have to be learned. Alex Salmond may have claimed less than a year ago that Scotland's banks 'are among the most stable financial institutions in the world'; it is clearly not the case. Humility, hard work, fairness and proper regulation are needed to restore our banks' reputation."
JIM SPOWART founder of HBOS's Intelligent Finance division:
"The key issue here is whether Sir Fred overruled his board when the decision was taken to buy ABN Amro. Did other people speak out at the time and say 'this is not a good idea'. If he overruled them, then he is culpable. But if not, then the culpability is shared.
"I don't seem to remember anyone at the time speaking out. Sir Fred was basing his judgment on due diligence by the auditors and he would have talked to the regulators, explaining his intentions.
"It's all very well people like Gordon Brown blaming him for it now and hanging him out to dry. We all bought into the rights issue – I am annoyed, too – but it is wrong to blame Sir Fred without knowing all the facts. If others spoke out and he overruled them, then he is culpable; otherwise, blame should be shared equally."
MARGO MACDONALD independent MSP for the Lothians:
"The hounding of Sir Fred is the reaction of the mob, but the mob has a genuine grievance. Now, the mob doesn't usually get it right at the start and it hasn't quite got it right in this case, but he has to take some responsibility.
"Presumably, he had a management team and a board of directors and there were supposed to be auditors and the Financial Services Authority.
"I think he is culpable and I hope he is honourable enough to do what he can in way of recompense; whether or not he can send back his knighthood is a matter for him. However, I think he should do so because it was an honour and it has turned out that his behaviour has caused a huge amount of grief and damage to a large number of people. It would be the honourable thing to do."
JOHN SWINNEY the finance secretary:
"The extent of the difficulties of the Royal Bank have centred on the takeover of ABN Amro and its international division, which, in retrospect, was clearly a mistake.
"While no-one could have predicted the full impact of the collapse of the subprime market on the international financial system, clearly Sir Fred Goodwin bears responsibility for the overall strategy of the bank during that period, and he has accepted that responsibility.
"Beyond that, there was a culture shared by governments and regulators that built up an unsustainable asset bubble, and for that we all have to share part of the responsibility.
"The RBS Group contains many strong businesses in retail banking and insurance. The hope must be that these will maintain employment and be the bulwark for its recovery."
INVESTMENT BANKER IAN BLACKFORD, a former head of Deutsche Bank's equity activities in the Netherlands:
"Sir Fred is getting it in the neck and, in a sense, he should be. But we must remember that he took over from George Mathewson with a specific remit of turning RBS into a global brand. He may have gone about that with gusto, but that was what he was supposed to do.
"ABN Amro was a scandal, hubris of the worst sort; but where were the non-executive directors? They are supposed to hold the executive directors to account, and we shouldn't forget that Gordon Brown presided over the regulatory regime for ten years, so he bears some responsibility as well.
"It is right that people are asking what went wrong, but there are a lot of people responsible, including the directors, the regulators and the government."
Douglas Mill is actually correct in what he says - the thing is the Government have allowed this lot, including Mill to do as they pleased.
Self regulation and all that must be ended and as you have written before on the subject what comes after cannot be anything like the slcc which looks just as bad as the Law Society did under Mill.
Mr. Mill's reputation is already widely known, and this most recent episode of breathtaking hypocrisy merely underlines it....again.
Sounds as if, removed from the cosy expenses and salary the Law Society provided, he is now touting for business in what remains of the financial services in Edinburgh.
He will no doubt be able to rely upon the support of Mr MacAskill who, while pontificating on what a great debt we all owe to the Scottish Legal Profession, presented the RBS as a model the profession could emulate, assuring us that "Today we can be proud of businesses such as the Royal Bank of Scotland which has proved it can compete with the best."
Take a hike!
You shouldn't even give Mill airtime Peter - he is a nobody now.I will tell you more ..
# Anonymous @ 2.27pm
Correct, I agree entirely.
# Anonymous @ 3.13pm
I agree
# Anonymous @ 3.42pm
Its a possibility which cant be ignored ... I certainly wouldn't have had Mill on other than to show the problems which have befell the banking industry by way of poor regulation and institutions being allowed to do as they pleased, has basically been going on in the legal services market for decades, under Mr Mill's stewardship, or is that dictatorship ?
# Anonymous @ 3.57pm
Its hard to find an impartial opinion these days on such events or individuals, when such people as those who have either dined or been in the presence of, or are influenced or indebted in some way to those same bankers who have presided over the fall of our once great institutions ... so I wouldn't set too much store by those quoted in that story.
Perhaps more informative opinions could be had from any RBS staff who might be facing unemployment, or those who have lost money or been thrown out of their homes by these same one 'glorious' people.
I seem to remember most of those people quoted appearing at RBS sponsored events or dinners while Sir Fred & Douglas Mill were in power anyway ...
# Anonymous @ 4.04pm
Yes, I agree with your comment, although what does that say about Government when they have allowed all this to take place - and as you say, allowed Douglas Mill to do what he did too, which ruined many a life or asset, just to protect thoroughly despicable solicitors who have went on to do even worse to others ...
# Anonymous @ 4.15pm
I agree entirely with what you say.
It seems we are still dealing with Douglas Mill's policies to restrict Scots access to justice while protecting a monopolistic, corrupt legal services framework, and that person now implementing Douglas Mill's policies is Kenny MacAskill.
Indeed, one may perhaps call Kenny MacAskill, a puppet figure for the legal establishment who wish to protect their business & money market, because at the end of the day that is what its all about, money, power and protecting a monopoly, nothing to do with providing real access to justice, or ensuring consumer protection or justice seen to be done ...
I liked your piece on this Peter,although I do sense no matter how unlikable or vicious Douglas Mill certainly appears to be from your write up on his history,he is correct in saying this was a failure of Government and the regulators but just as much as they failed to keep an eye on the banks they also failed to keep an eye on Douglas Mill and his own activities you have so credibly highlighted.
I did read the story in the Scotsman which has been quoted by an earlier comment but all things said and done I don't particularly rate any of those individuals giving their opinion on what or who is to blame, because they are part of the same system which created the banking collapse and they cannot escape that fact.
Well done as always Mr Cherbi for your efforts.Keep up the good work!
To the revealing post of 3.57pm concerning SIR Fred's culpability;
As Chairman of the Board, the buck stops there!
The RBS are the bankers for the Law Society of Scotland itself and I would expect this accounts for why Douglas Mill feels he should come out and support someone who has probably helped him along the way over the years.
Quite a lot could be made of that relationship because I understand the RBS are themselves involved in a lot of complaints which involve lawyers stealing client funds.Worth a look into this Mr C.
gee peter could have done with you on watergate lol !
Quite a write up on Douglas Mill.I wouldn't like to have him as a friend,it may make people think I'm just as bad as he is !
Douglas Mill sounds like just the type of guy for Fred the Shred.Do they share any of Mill's business values too ?
I don't give a shit who says what about who did what - no one deserves an £8.37million pension EVER
What this guy and his friends did to the Royal Bank is terrible and they should all be held personally accountable now the taxpayer has had to bail them out
This is so typical of Mill to come out and say something like that but now I read your story on it I think they should both get married !
So while this Douglas Mill was fighting to stop regulation he is now blaming not enough regulation on banks ?
He sounds dangerous and I now wonder about Goodwin given the company he seems to be keeping.
How about 'birds of a feather' ?
Personally I feel Mill made a huge error of judgement in appearing on Reporting Scotland and coming out with that statement.I think there may be grounds to investigate his own involvement with the RBS during his time as the Chief Exec of the Law Society.
I wonder how much those few words of praise earned or cost !
What next ? Will they be complimenting Hitler, Stalin or Bush ?
Yes it turns out the RBS sponsors the Law Society and legal profession to the hilt ! I think I will be removing my money from a bank that is supported by lawyers, many of them bent !
Even sponsors awards for lawyers ! http://awards.legalbusiness.co.uk/content/view/72/64/
Heres a link from the Law Society showing RBS sponsors them too !
http://www.lawscot.org.uk/media_centre/news_arch/news_20080606.aspx
The Future of Lawyers Conference
The future of Scotland’s legal profession is the focus of a major conference in Edinburgh today (Friday May 23).
Emerging technology will challenge the traditional role of lawyers, solicitors attending a conference today will hear from I.T. adviser to the Lord Chief Justice of England and Wales, Richard Susskind.
Cabinet Secretary for Justice, Kenny MacAskill, will also tell delegates that a strong and independent legal profession with appropriate regulation will ensure the public is protected.
The legal heavyweights will be talking to delegates at the Law Society of Scotland’s Conference – The Legal Profession in 5 Years Time, at the Sheraton Grand in Edinburgh.
Mr MacAskill will tell the conference: “The legal profession in Scotland has served us well for centuries and will continue to do so. My vision for Scotland is to have a strong, independent legal profession that is appropriately regulated to ensure the public is protected and quality is maintained. Scottish firms will compete internationally and businesses will choose Scotland as their destination of choice. At the same time they will continue to provide an excellent service to the communities they serve in Scotland.”
Richard Henderson, the Society’s President, said: “Solicitors are extremely good at adapting to changing markets and client needs – it is at the essence of successful businesses.
“Following the debate and vote yesterday in favour of allowing alternative business structures the next few years could lead to some of the biggest changes for solicitors and the way legal services are delivered, whether on a global scale or in Scotland.
“The revolution in technology and communications, the emergence of non lawyer providers of legal services and legislative developments in England and Wales will result in change on an unprecedented scale.
“The Society will be at the heart of these reforms and will be ensuring a strong regulatory system applies to any new business structures. Likewise, core values must be protected, service quality maintained and access to justice safeguarded and consumer protection upheld.”
Richard Susskind’s forthcoming book, The End of Lawyers? Rethinking the Nature of Legal Services, claims that there is remarkable scope for solicitors to use technology to their benefit.
“The title of the book is a provocative one, however I am aiming to provoke the legal community into serious reflection and practical action.
“For some law firms, existing and emerging technologies will be adopted widely and may render them redundant. On the other hand there will also be opportunities in the future for lawyers to develop and deliver a new range of services.”
Other topics which will be covered at the Conference include civil litigation, paralegals, legal education legal aid, criminal justice, the bench, conveyancing and regulation.
The Royal Bank of Scotland (RBS) is the main sponsor of the Conference.
David Boyd relationship director, RBS Commercial Banking, said: “As Scotland’s legal profession enters another period of change, RBS is a proud sponsor of the Law Society of Scotland’s annual conference, an event certain to reach the heart of the issues shaping a market thought to be worth £1.3 billion to the Scottish economy.“
ENDS
NOTE TO EDITORS:
The Society Annual General Meeting was held in Edinburgh yesterday (Thursday, May 22). A news release can be found at www.lawscot.org.uk
Richard Susskind is Emeritus Professor of Law at Gresham College, IT adviser to the Lord Chief Justice and consultant to leading law firms. He was awarded an OBE in 2000.
Thanks for all your comments on this article.
I will be looking into the connections between the RBS, Douglas Mill & the Law Society of Scotland .. any information or cases of complaint involving solicitors, and mentions of the bank please post for further study.
I have never aloud anyone to act on behalf of my firm to protect me nor to lend any of my own personal money nor to pay for any issues that arise. It wouldn't benefit me because just like they did they could set me up and then use me to claim millions on my back side. they had poisoned me and besides my father wouldn't have never agreeded too it. I was the sole owner of my business. I started it in 1992 and I had all the inetests of the company. if others had proven their loyalty it would have been something for me to reward when I closed it. but thy were blocking calls, mail and other things. I have asked my brother wes to bankrupt my businees and swore that I started it on my own and was the only owner. no one else contributed anything except what they were paid for...
mr cherbi, if you knew that they were blocking calls from my father, mail too my office and htat they were only there too steal and set me up then you would understand the situation.. they were also on the other side of the fence. they only blocked the truth together. it was complete mutany so I gave my brother a sworn statement of what they did at my office.. I asked him to bankrupt the busuiness and that I never requested any line of credit for anything nor did I ever assign that right.
Thanks for the tip,I will avoid Scottish Banks as well as Scottish lawyers now too.Everyone should do the same if they want to protect their money from these creeps
gosh I want to see this master policy! this is carrie reilly and I would like too see it since I am the one they were supposed to be protecting and know nothing about it. I want too see if I even signed the document. I doubt it. that is why aren't they giving it too you. is it because it was done out of deception? They have gone around killing friends of mine and tehn the opposition comes in and doesn't disclose that they are truly criminal lawyer protecting the criminal and start to do business with me and never tell me their true intention. they can kill a friend of mine and then manipulate the situation and others around me to protect themselves? I would never agree to sign with a company that did that. I was manipulated by these individuals because of the people they represented in criminal court. that is what happened. they were all part of a murder and they surrounded me to protect heir interests and then set me up. do you understand that.
I think Mill probably did the best thing possible in opening his trap on BBC.Now we know there is a relationship between the Law Society and RBS and its worth the former Law Society boss coming out in support of the worlds worst banker and that only happens where there is BIG MONEY involved.
Law Society we are watching you and RBS too and all that sponsorship of lawyers should end now the taxpayer has had to save the bank
a disgusting outburst from a man who has caused me a lot of pain since i made a complaint against my lawyer
i wouldnt trust Mill or Goodwin or anyone at the law society or the rbs now
Hmm some very interesting comments here and a fair point about the RBS and sponsorship of lawyers.
I think I will take my business elsewhere if that is the case so thanks to whoever posted that Scotsman story or wherever it came from.
Simply to say I agree with all the posters who say Mill should shut up but he wont because thats not his nature.
You should see some of the other things he got up to while Chief Exec -I think you might find there are people willing to talk now.
great story Peter and as you say with fiends like these it must make people wonder the company they keep (oh and I meant to say fiends, not friends !)
Douglas Mill - always good for a laugh is what you should have called this clip.
He seems to know plenty about RBS & Fred,maybe more than is good for him so I'd invite him along to the Parliamentary inquiry to let the rest of us in on what he might know .
I see Mill's friend Goodwin gets another job with a bunch of goon architects ! Jeez if ever there was a time to boycott everything from Scotland it MUST be now !
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