HBOS ex-chiefs admit taking too much risk before bailout
Monday 03 December 2012
Two former bosses of HBOS, the bank which had to be bailed out by the government and taken over by Lloyds at the height of the financial crisis, today admitted that it had taken greater risks than it should.
Sir James Crosby, architect of the merger of Halifax and Bank of Scotland and chief executive of HBOS until 2006, largely blamed the closure of wholesale money markets.
But he added: “with the benefit of hindsight, this brought about a much more significant deterioration in the performance of HBOS’s corporate loans than anyone would have expected or indeed should have been the case.
“That can only be because HBOS was taking more risk than it understood was the case at the time.”
His successor Andy Hornby, who ran the bank until the Lloyds takeover in 2009, blamed most of its troubles on the corporate lending department run by Peter Cummings, who was fined £500,000 by the Financial Services Authority and barred from working in financial services in September.
Hornby said: “The combination of the sharply contracting wholesale funding markets and the corporate division’s concentration in commercial property and lower-grade assets was the primary cause of the ensuing provisions.”
Both men were appearing in front of the Parliamentary Commission on Banking Standards this afternoon.
- 1 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 2 Oil tanker with $100 million cargo goes missing off Texas coast
- 3 George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
- 4 Lady al-Qa’ida: On the trail of Dr Aafia Siddiqui, the world’s most wanted prisoner
- 5 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
Oil tanker with $100 million cargo goes missing off Texas coast
George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
With Douglas Carswell joining Ukip, my party has taken another giant step forward
- < Previous
- Next >
iJobs Money & Business
Highly Attractive Salary: Austen Lloyd: BRISTOL - This is a very unusual law c...
£35000 per annum: Harrington Starr: Network Engineer (CCNP, CCNA, Linux, OSPF,...
£50000 per annum: Harrington Starr: DevOps Engineer (Systems Administration, L...
£60000 - £70000 per annum: Harrington Starr: A prestigious leading professiona...