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Ex-HBOS chief James Crosby stripped of knighthood

Sir James Crosby
James Crosby

Former HBOS chief executive James Crosby has been formally stripped of his knighthood following a damning report into the bank’s collapse.

Crosby was HBOS chief executive from its creation in 2001 following the merger of Halifax and Bank of Scotland to 2006. He was also FSA deputy chairman from 2007 to 2009.

Crosby said he would give up his knighthood in April alongside 30 per cent of his pension pot after a Parliamentary Commission on Banking Standards report called for Crosby, ex-chief Andy Hornby and chairman Lord Stevenson to be banned from working in financial services.

Commission chair Andrew Tyrie said in the report Crosby was the “architect” of the strategy that led to HBOS’ downfall. HBOS was forced to merge with Lloyds Banking Group in 2008 to avoid collapse, with the Government taking a 42 per cent stake in the merged bank.

The UK Cabinet posted news of Crosby’s annulled knighthood in the London Gazette, which says: “Letters Patent dated 11 June 2013 have passed the Great Seal of the Realm cancelling and annulling the Knighthood conferred upon James Robert Crosby on the 6 December 2006 as a Knight Bachelor.”

Crosby is the second bank boss to be stripped of its knighthood, joining Fred Goodwin who had his knighthood annulled in January 2012.

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Comments

There are 8 comments at the moment, we would love to hear your opinion too.

  1. Derek Bradley ceo Panacea Adviser 12th June 2013 at 8:39 am

    I feel a little uncomfortable about this given that Hector Sants is now at Barclays with “Letters Patent”.

    Is there a quota of K’s and this removal has simply redressed the balance with a one in, one out policy?

  2. Roman Duzinkewycz 12th June 2013 at 9:00 am

    What about Hector Sants then? Surely he must be next?

  3. It is a disgrace that Hector Sants should keehis K when he was incharge of the regulator who turned a blind eye to what the banks were doing. Now is the time for his to be revoked

  4. If Sants had one iota of integrity, he would go.

  5. Not just Sants but the whole lot of them that were at the FSA during the period up to the crash should be drummed out of this business.
    Right school network and a degree that doesn’t even begin to prepare you to make decisions costing others millions and then to cap it all they bailed out before it even hit the fan. It stinks.

  6. With an annual pension estimated at £700,000 – I reckon he will still be laughing all the way to the bank …and laughing at it!!

  7. He was also the FSA deputy!!!!!!!!!!!
    My god no wonder the banks had cart blanch to do what they wanted. How in earth did the head of a bank be appointed to a senior position of the FSA at the SAME time.
    Beggars belief

  8. To be fair to MR Crosby, he asked for it to be taken away.

    When I queried (strongly) Hector Sant’s Knighthood with local MP Bernard Jenkins, his limp response was that MP’s don’t get involved either way in this and it would not be proper for him to enquire.

    My take on that is we will need to rely on the integrity and honourable practice of these individuals to hand the knighthoods back.

    Well done Mr Crosby for displaying some integrity I will live in hope that the others do the same.

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