James Crosby, the former boss of HBOS who was slated by parliamentarians for a "colossal failure" of management at the helm of the bank, has been formally stripped of the knighthood he was awarded before the banking crisis.
He had taken the unusual step of asking for the honour he was given by the Labour government to be removed after April's damning report by the parliamentary commission on banking standards said he should take primary responsibility for the near collapse of the bank.
The report accused Crosby, his successor Andy Hornby and former chairman Lord Stevenson, of a "colossal failure" of management and described Crosby, who was chief executive until mid-2006, as "the architect of the strategy that set the course for disaster".
The banking commission investigated the collapse of HBOS, which was rescued by Lloyds during the 2008 banking crisis, as part of its analysis into the culture of banking. The commission is due to publish its final report on how to clean up the City in the coming days and is expected to recommend a clampdown on bonuses, a tougher registration system for bankers and to focus on the role of auditors.
The announcement that Crosby was being stripped of the knighthood was made in the London Gazette just as the commission's members were locked in negotiations about the conclusions of their final report, which is expected to run to 600 pages.
"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," the announcement read.
Crosby gave up 30% of his £580,000 a year pension – and left the board of Compass Group and an advisory position at private equity company Bridgepoint – after the banking commission report. At the time he said: "I am deeply sorry for what happened at HBOS."
His spokesman declined to comment.
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