A group is claiming responsibility for the damage to the Edinburgh property of Sir Fred Goodwin.

The Grange home and luxury automobile of the former Royal Bank of Scotland chief executive was smashed in the early hours on Wednesday. It is believed there was no one in the house at the time of the attack.

A group called "Bank Bosses Are Criminals" sent two e-mail to the Edinburgh Evening News soon after the incident. One threatened further action.

It said: "We are angry that rich people, like him, are paying themselves a huge amount of money, and living in luxury, while ordinary people are made unemployed, destitute and homeless.

"This is a crime. Bank bosses should be jailed. This is just the beginning."

Three smashed ground-floor windows of the stone villa were clearly visible. In the driveway, the rear window of a dark-coloured Mercedes S600 saloon was smashed, as well as the nearside rear passenger window. (See a close-up view of the damage)

The home is monitored by CCTV and police were hoping the video could offer clues into who caused the damage. Lothian and Borders Police said they arrived to the scene at around 4.35am and appealed for witnesses to come forward.

An RBS spokesman said: "We are aware of the incident but it is a matter for police. There are security arrangements in place for Sir Fred, as is normal practice for departing executives."

Sir Fred has been subject to heavy criticism after refusing to give up any of his £700,000-a-year pension.

The former RBS chief rejected UK Government pressure to accept a reduction in his package, insisting that changes to the early retirement deal he negotiated when he was forced out in the autumn were "not warranted".

The massive payout was branded "obscene" and "grotesque" by MPs and "unjustifiable and unacceptable" by Prime Minister Gordon Brown.

Earlier this month, Labour deputy leader Harriet Harman said the government was taking "all steps" to challenge the enforceability of his pension contract.

Dubbed "Fred the Shred" for his ruthless cost-cutting, Sir Fred boasted of catapulting RBS "to the top of the premier league" with a £49billion deal to capture Dutch rival ABN Amro in 2007.

The acquisition proved disastrous for RBS as the credit crunch gripped markets, exposing the bank's weak balance sheet and bringing the firm to the brink of collapse.

RBS is now nearly 70%-owned by the taxpayer after a £20billion bailout. Last month the bank unveiled a record £24.1billion loss and plans to raise up to £25.5billion from the taxpayer.

One of Sir Fred's Edinburgh neighbours said the attack on his house was wrong but she had little sympathy for him.

The woman, who gave her first name as Deirdre, said: "Sympathy? Exactly the opposite.

"If I was him I would have refused to have all this money and I would be mortified at what had happened to the bank."