Prudential Regulation Authority chief executive Andrew Bailey has claimed it is “more than odd” that senior directors at the helm of failed banks have not faced charges.
According to The Telegraph, Bailey told an audience at yesterday’s Future of Financial Services summit that it is a “source of some surprise” to him that authorities have brought cases against junior bankers but not senior directors.
He said: “It is to my mind a very striking observation and difficulty with the crisis that no formal action has been taken against any chief executive or any chairmen of a failed institution. Not because I have a personal vendetta against them but it is more than odd that action has been taken against people lower down institutions but not at the top.”
Bailey reportedly said bosses have been protected so far because there is a “problem with trail evidence” that could convict senior bankers, adding it is evidence of a “flaw in the system” that allows bosses to “delegate responsibility as well as tasks”.
His words follow reports that business secretary Vince Cable has asked officials to investigate whether three former HBOS directors could be banned from working as company directors.
Earlier this month, the parliamentary commission on banking standards published a report into the “catastrophic failure” of HBOS in which is called for ex-chairman Lord Stevenson and ex-chief executives Andy Hornby and Sir James Crosby, who was also former FSA deputy chairman, to be banned from working in financial services.