James Crosby To Give Up Knighthood and 30% Of Pension

Oliver Twist

Sir James Crosby, the former boss of HBOS, has asked for his knighthood to be revoked after a scathing report by MPs found that he sowed the "seeds of destruction" of one of Britain's biggest banks.

Crosby, who was chief executive of HBOS shortly before the government had to pump in £20.5bn to prevent its collapse in 2008, said he was "deeply sorry" for his role in HBOS's failure and asked for his knighthood, awarded in 2006, to be removed.

"Although I stood down as chief executive of HBOS in 2006, some three years before it was taken over by Lloyds, I have never sought to disassociate myself from what has happened," he said in a statement yesterday.

"Shortly after I left HBOS, I received the enormous honour of a knighthood in recognition of my own – and many other people's –contribution to the creation of a company which was then widely regarded as a great success.

"In view of what has happened subsequently to HBOS, I believe that it is right that I should now ask the appropriate authorities to take the necessary steps for its removal."

Crosby said he would also give up 30% of his £580,000-a-year pension after last week's report into the bank's collapse.

The damning report by the parliamentary commission on banking standards, published last week, found a division of HBOS guilty of "very serious misconduct" in the way it was managed in the run-up to its taxpayer bailout and rescue by Lloyds Banking Group.

The Bank of Scotland division of HBOS only escaped a "very substantial penalty" because the taxpayer would have had to foot the bill. It is understood that the fine would have easily surpassed the £17.5m penalty slapped on Goldman Sachs for systems failures.

Powered by Guardian.co.ukThis article was written by Rupert Neate, for guardian.co.uk on Tuesday 9th April 2013 16.49 Europe/London

guardian.co.uk © Guardian News and Media Limited 2010


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