RBS chief had sexual relationship with married senior colleague on eve of £45billion collapse

Sir Fred Goodwin had an affair with a senior colleague that could have affected his ruling that the Royal Bank of Scotland collapsed, MPs claimed last night.

For the first time the public learned that Sir Fred had an order of confidentiality to cover an affair he had with a senior woman executive as he led the bank to a catastrophe that ultimately cost taxpayers £ 45billion.

MPs and peers called for the whole truth and wonders if Sir Fred decisions was impaired. There were also requests for him to be questioned again by the Financial Services Authority is compiling a long-awaited report on the collapse of the 2008 RBS.

After weeks of speculation about why the disgraced banker had made a gagging order, the reason was revealed in Parliament considerably. Lord of Stoneham Droxford used parliamentary privilege to kill Sir Fred wall of secrecy.

Ask a question on behalf of his colleague, Lord Oakeshott, a spokesman for Sir Fred, he said: "Every taxpayer has a vested interest in public events that led to the collapse of the Royal Bank of Scotland, how Can be good for a super-order to hide the alleged relationship between Sir Fred Goodwin and a senior colleague? If true, this would be a serious breach of corporate governance and not even the Financial Services Authority would be allowed to know. "

A few hours later, the Daily Mail asked the injunction in force for Sir Fred to be lifted. Lawyers for Sir Fred said Mr Justice Tugendhat in the High Court that since the matter was now in the public domain, they would not try to maintain coverage.

The judge partially lifted the injunction, but said that the prevention of publication of the woman's name or details of their "sex" should remain in force.