Sub-prime motor group snaps up ex-FSA deputy

SIR James Crosby has been named as chairman of sub-prime car finance business MoneyBarn, in his first financial appointment since resigning as deputy chairman of the Financial Services Authority (FSA).

MoneyBarn, whose backers include Octopus Investments and merchant bank Quayle Munro, rebranded from Duncton in August. The online company provides finance for consumers and businesses with bad credit ratings, offering financing of up to £25,000 per car on a representative annualised percentage rate of 30.2 per cent.

Sir James, who oversaw the merger of Bank of Scotland and Halifax in 2001, left the FSA under a cloud in February 2009, following allegations that while he was chief executive of the newly formed HBOS he sacked whistleblower Paul Moore.

At the time, Sir James said there was “no substance” in the allegations made by Moore, a senior manager, that HBOS was exposed to too much risk. An investigation on behalf of the HBOS board concluded Moore’s claims had “no merit”.

Since leaving the City watchdog, Sir James has been appointed as chairman of software company Misys and as a non-executive director of leisure group Compass. Sir James was unavailable for comment.