Ex-HBOS Head Quits After Bank Report Criticism

Former HBOS chief executive Sir James Crosby has resigned from his new job as an adviser to a private equity firm following criticism of his role in the collapse of the bank.

He has left European investment firm Bridgepoint after a report by the Parliamentary Commission on Banking Standards criticised the role played by top HBOS executives before the bank's bailout.

Sir James was the "architect of the strategy that set the course for disaster" and held primary responsibility for the collapse along with former chairman Lord Stevenson and fellow chief executive Andy Hornby, the report said.

It blamed their "toxic" misjudgements for the bank's downfall and £20.5bn taxpayer bailout at the height of the financial crisis, and said they should not be allowed to work in the financial sector again.

Lord Stevenson, Sir James Crosby and Andy Hornby were slammed in the report

The former HBOS bosses also failed to admit their mistakes, the report said, and should apologise for their "incompetent and reckless board strategy".

Peter Cummings is the only former HBOS director to have been penalised by City regulators after being fined £500,000 and banned for life from working in the City last September.

But the commission said it was wrong that he should shoulder the blame alone and called on the new City regulator, the Prudential Regulation Authority, to consider stripping Sir James, Mr Hornby and Lord Stevenson of their Approved Person-status - which permits individuals to carry out particular financial functions.

Sir James was chief executive of HBOS from 2001 to 2006 and also former deputy chairman of the Financial Services Authority.

He was a member of the European Advisory Board at Bridgepoint and is also a senior independent director of catering firm Compass.

Mr Hornby's current employer - bookmaker Gala Coral - has defended his position of the company's boss.

"Coral as a business is performing extremely well and that coincides with Andy's tenure as chief executive," spokesman Simon Clare said.

"He's doing a great job and we're delighted with the job he is doing. He has the complete backing of the business."

Lord Stevenson was singled out for special criticism in the report for claiming reckless lending at HBOS was not his fault because he was "only there part-time".

It said he had shown himself "incapable of facing the realities of what placed the bank in jeopardy from that time until now".

While Royal Bank of Scotland's disgraced former boss Fred Goodwin has been stripped of his knighthood, Sir James and Lord Stevenson have retained their titles.

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