The criticism over this is mounting and not particularly in sympathy with Mr Goodwin but because it increasingly looks like a bit of ill thought out victimisation designed to grab the headlines.
Yes it is rather inappropriate for a banker who led RBS to the brink of ceasing to exists has a knighthood for "services to banking" which is what he got it for in 2004 when life was all rosy but if you strip Goodwin of his title how can you possibly leave those Knights of the Realm or Lords who are convicted criminals with theirs? As Coddy pointed out above Archer has a title and kept it despite going to prison and I am pretty sure one of the Lords who went to to prison over the expenses scandal has not only kept his title but has taken up his seat once again in the upper house.
It's quite right Goodwin gets a ton of flak for running RBS into the ground but given he is not a convicted criminal stripping him of his title looks increasingly petty and not thought through. Mind you this is the government of unintended consequences who tend to act first and think later so it is no surprise really.