RegulationApr 10 2013

James Crosby falls on his sword following MPs’ report

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Mr Crosby, who was knighted in 2006 for his contribution to financial services, said he would also forego 30 per cent of his gross pension entitlement.

In a statement the former banker, who was described in the MPs’ report as the “architect” of the collapse of HBoS, said: “In view of what has happened subsequently to HBoS, I believe that it is right that I should now ask the appropriate authorities to take the necessary steps for its removal.”

Paul Moore, who took HBoS to an employment tribunal after claiming he was dismissed as head of group regulatory risk in 2004 for raising concern about excessive lending, said it was the right thing for Mr Crosby to do.

He said: “He must be given due credit, but 30 per cent of £700,000 in his pension is not enough.”

John Mann, Labour MP and Treasury select committee member, said: “It sets the benchmark for others. At last a banker who is prepared to say: I personally got it wrong and it is right that I am seen to make amends by showing that I got it wrong.”

A Cabinet Office spokesman declined to comment.

Despite the move, Mr Moore said a judicial inquiry was needed to highlight those responsible and, if necessary, strip individuals of any honours or ban them from directorships.

The parliamentary report also highlighted failings by Mr Crosby’s successor Andy Hornby and chairman Lord Stevenson.

At the time of going to press, Lord Stevenson remained in office while Mr Hornby remains as chief executive of Coral.

The report also criticised the FSA for failing to monitor the growth and assets at HBoS after 2004.

According to Mr Moore, the HBoS supervisory team was led by Kirstie Caneparo. Documents sent to the Treasury select committee show she was involved in risk assessments of HBoS in 2003 and 2004.

She left the FSA in 2006 to join Aviva and became chief risk officer of Resolution in 2010, reuniting with Mr Tiner, who had been chief executive of the FSA up to 2007.

Ms Caneparo declined to comment.

Adviser comment

Mas, under its new chief executive, will be putting together a strategy for financial capability and as part of this process will soon be seeking advice from a range of people.