New laugh for Goodwin on his way out of bank

IF Sir Fred Goodwin has a sense of humour (and if anyone ought to be laughing his way out of the bank it is him) he must have delighted in Harriet Harman's latest gaffe.

With a magnetic attraction to banana skins, she bit on the dangling worm that the Government might pass special laws to deprive him of his bloated pension.

Anyone attempting to drive such retrospective and personalised legislation through Parliament could expect immense opposition, including from Labour MPs who loathe Sir Fred and all he stands for. The civil liberties implications are too far-reaching for a smooth passage.

Were the Government successful, Sir Fred's lawyers would be marching to the High Court in no time waving copies of Labour's own Human Rights Act under the judges' noses. And, say some MPs, he would probably win.

The Prime Minister and the Home Secretary both sidestepped questions about whether they endorsed Ms Harman's threat today.

Downing Street officials, asked exhaustive questions, made clear that the current focus is on challenging the pension under existing laws.

Mr Brown was careful not to embarrass his deputy leader by dumping on the idea altogether but his comments left no doubt that she had gone way off piste. Will Ms Harman be embarrassed? Of course not. She knows well that the "court of public opinion", as she puts it, is on her side.