Concerns about the risk management of HBOS were raised by the City watchdog as early as 2002, the Financial Services Authority revealed yesterday as a political storm erupted over the resignation of the bank’s former chief executive as deputy chairman of the regulator.
Sir James Crosby quit his role at the FSA in the wake of fresh accusations that he ignored warnings over HBOS’s rapid growth when he was running the bank, which has subsequently been bailed out by taxpayers.
The Tories criticised Gordon Brown’s handling of the bank crisis, questioning his judgment on the appointment of Crosby to regulate and rescue the sector.
Sir James said he was 'totally confident' there was no substance to the allegations over risk management made by Paul Moore, a former head of regulatory risk at HBOS, that were revealed to the Treasury select committee on Tuesday.
Financial Times, The Times, Daily Telegraph