Former HBOS chief executive and former FSA deputy chairman Sir James Crosby has resigned from his role as an adviser to private equity firm Bridgepoint.
The BBC reports Crosby has quit following the publication of a damning report today from the parliamentary commission on banking standards into the collapse of HBOS in 2008. It says it understands he was asked to resign by the private equity firm’s board. Bridgepoint was unavailable for comment.
The report, “An accident waiting to happen: The failure of HBOS” calls for Crosby, fellow former HBOS chief executive Andy Hornby and ex-chairman Lord Stevenson to be banned from working in financial services.
In the report, commission chair Andrew Tyrie says: “In the view of this commission, it is right and proper that the primary responsibility for the downfall of HBOS should rest with Sir James Crosby, architect of the strategy that set the course for disaster, with Andy Hornby, who proved unable or unwilling to change course, and Lord Stevenson, who presided over the bank’s board from its birth to its death.
“The commission considers the FSA should examine, as part of its forthcoming review of the failure of HBOS, whether these three individuals should be barred from undertaking any role in the financial sector.”
Tyrie adds: “The commission considers it a matter for profound regret that the regulatory structures at the time of the last crisis and its aftermath have shown themselves incapable of producing fitting sanctions for those most responsible in a manner which might serve as a suitable deterrent for the next crisis.”
Crosby was in charge of HBOS between 2001 and 2006 and was deputy chairman of the FSA from 2007 to 2009. He resigned from the regulator after HBOS whistleblower and former head of group regulatory risk Paul Moore gave evidence to the Treasury select committee that he had tired to warn Crosby HBOS was growing too quickly.
Crosby was appointed by the Treasury in April 2008 to carry out a review into the mortgage market in the wake of the financial crisis.