There is uproar in the financial press today following revelations by a former employee of HBOS claimed to have warned directors at the bank of the impending danger of their sales culture as long ago as 2004.
Paul Moore was employed as risk manager with HBOS between 2002 and 2005, his warnings that the bank was going too fast, “had a cultural disposition to challenge” and was a serious risk to financial stability and consumer protection, fell on deaf ears and culminated in Moore being dismissed from his position with the bank.
Moore claims that he received substantial damages in return for signing a gagging order, he is allowed to give evidence without fear of breaching the order due to the committee’s Parliamentary privilege protection.
The claim has led to the resignation of Sir James Crosby as deputy chairman of the Financial Services Authority, after Moore revealed that Crosby was not only responsible for his dismissal, but was also the ‘original architect’ of the strategy that led HBOS to near collapse.
The HBOS and RBS chiefs present were accused of arrogance after insisting that they were not personally to blame for fuelling the financial crisis.
To add more embarrassment to Gordon Browns Labour government, Crosby has been a personal advisor to Brown throughout the financial crisis, despite the Prime Minister spending the last few months condemning ‘irresponsible’ bankers.
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