Former HBOS boss quits role as advisor

Former HBOS chief executive Sir James Crosby has quit his role as an advisor to private equity firm Bridgepoint, as announced in a statement made by the company:

Following discussion with Sir James he has resigned from the advisory board this morning.

This follows a report that suggests that bosses at HBOS should be prohibited from working in financial services. Our reporter James Waterson:

The executives who ran collapsed bank HBOS should be banned from working in the financial services industry for life, according to a damning report released today that lays bare “catastrophic failures” at the former lender.

The company’s decision to chase fast growth by making high-risk loans was “a manual for bad banking”, according to the cross-party Parliamentary Commission on Banking Standards, that lists a catalogue of management failings in the years before HBOS was rescued by Lloyds in September 2008.

The committee of MPs and peers urge regulators to ban former chief executives Andy Hornby and Sir James Crosby, as well as ex-chairman Lord Stevenson, from taking up prominent roles at UK financial institutions in the future.

(Full article)