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| Version 1 | Version 2 |
|---|---|
| HBOS whistleblower probe demanded | HBOS whistleblower probe demanded |
| (about 2 hours later) | |
| The Tories want an urgent inquiry into claims that one of Gordon Brown's key advisers sacked a bank whistleblower who warned about excessive risk taking. | The Tories want an urgent inquiry into claims that one of Gordon Brown's key advisers sacked a bank whistleblower who warned about excessive risk taking. |
| Sir James Crosby allegedly sacked HBOS executive Paul Moore in 2005 after he warned the bank's board about its potentially dangerous "sales culture". | Sir James Crosby allegedly sacked HBOS executive Paul Moore in 2005 after he warned the bank's board about its potentially dangerous "sales culture". |
| Sir James was HBOS' chief executive at the time and is now the deputy head of the Financial Services Authority. | Sir James was HBOS' chief executive at the time and is now the deputy head of the Financial Services Authority. |
| The Tories say the claims could call Mr Brown's judgement into question. | The Tories say the claims could call Mr Brown's judgement into question. |
| Mr Moore, who was head of group regulatory risk at HBOS, has told the BBC there was evidence of "negligence", questions of "breach of principles" and even "recklessness" at the bank. | Mr Moore, who was head of group regulatory risk at HBOS, has told the BBC there was evidence of "negligence", questions of "breach of principles" and even "recklessness" at the bank. |
| 'Gagging order' | 'Gagging order' |
| In a Newsnight interview, he said: "I realised the bank was moving too fast and I raised those challenges very strongly at board level. I also raised issues of cultural indisposition to challenge and inappropriate behaviours, and ultimately I was sacked." | In a Newsnight interview, he said: "I realised the bank was moving too fast and I raised those challenges very strongly at board level. I also raised issues of cultural indisposition to challenge and inappropriate behaviours, and ultimately I was sacked." |
| Earlier, in written evidence to the Treasury select committee, Mr Moore said the crisis which drove HBOS to the brink of collapse could have been avoided if there had been adequate systems to hold bank chiefs in check. | Earlier, in written evidence to the Treasury select committee, Mr Moore said the crisis which drove HBOS to the brink of collapse could have been avoided if there had been adequate systems to hold bank chiefs in check. |
| What is at issue here is Gordon Brown's judgement and the people he takes advice from George Osborne, shadow chancellor | What is at issue here is Gordon Brown's judgement and the people he takes advice from George Osborne, shadow chancellor |
| He said: "I told the board they ought to slow down but was prevented from having this properly minuted by the chief financial officer. | He said: "I told the board they ought to slow down but was prevented from having this properly minuted by the chief financial officer. |
| "I told them that their sales culture was significantly out of balance with their systems and controls." | "I told them that their sales culture was significantly out of balance with their systems and controls." |
| Mr Moore said that, after suing for unfair dismissal, he received "substantial damages" but was subjected to a "gagging order" preventing him from speaking out. | Mr Moore said that, after suing for unfair dismissal, he received "substantial damages" but was subjected to a "gagging order" preventing him from speaking out. |
| He had decided to talk publicly about the issue now because, he said, "the public interest demands it". | He had decided to talk publicly about the issue now because, he said, "the public interest demands it". |
| 'Emperor's new clothes' | 'Emperor's new clothes' |
| Mr Moore's account of his warnings and his alleged treatment by Sir James was disclosed in an evidence session of the Treasury committee, at which figures including former HBOS chief executive Andy Hornby and former chairman Lord Stevenson apologised for bringing their banks to the verge of collapse. | Mr Moore's account of his warnings and his alleged treatment by Sir James was disclosed in an evidence session of the Treasury committee, at which figures including former HBOS chief executive Andy Hornby and former chairman Lord Stevenson apologised for bringing their banks to the verge of collapse. |
| Lord Stevenson said Mr Moore's claims had been rejected after a nine-month inquiry by the Financial Services Authority. | Lord Stevenson said Mr Moore's claims had been rejected after a nine-month inquiry by the Financial Services Authority. |
| He also denied Mr Moore's claim that he had been prevented from putting his claims on the record by having them included in the minutes of a board meeting. | He also denied Mr Moore's claim that he had been prevented from putting his claims on the record by having them included in the minutes of a board meeting. |
| Mr Hornby also rejected Mr Moore's claim that he was met with "threatening behaviour" from some executives when he tried to raise concerns. In his written evidence to the committee, Mr Moore said the HBOS story was like the "Emperor's new clothes" with no one prepared to "step out of line" and say what was going wrong. | Mr Hornby also rejected Mr Moore's claim that he was met with "threatening behaviour" from some executives when he tried to raise concerns. In his written evidence to the committee, Mr Moore said the HBOS story was like the "Emperor's new clothes" with no one prepared to "step out of line" and say what was going wrong. |
| Shadow chancellor George Osborne said: "What we don't know is whether Mr Moore's allegations that his warnings went ignored by Sir James Crosby are true or not. | |
| "And I think the government need to now investigate these allegations. They are exceptionally serious. " | |
| He also said: "Given that, as chancellor, Gordon Brown appointed Sir James as deputy chairman of the FSA and that as prime minister he relies upon him as a key economic adviser, the government need urgently to investigate the allegations and discover the truth. | |
| "What is at issue here is Gordon Brown's judgement and the people he takes advice from." | "What is at issue here is Gordon Brown's judgement and the people he takes advice from." |