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| Version 2 | Version 3 |
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| Sir James Crosby resigns from FSA | Sir James Crosby resigns from FSA |
| (10 minutes later) | |
| Sir James Crosby has resigned as deputy chairman of City watchdog, the Financial Services Authority (FSA). | Sir James Crosby has resigned as deputy chairman of City watchdog, the Financial Services Authority (FSA). |
| His departure follows allegations that, when chief executive of bank HBOS, he had sacked a senior manager who claimed the bank was taking on too much risk. | His departure follows allegations that, when chief executive of bank HBOS, he had sacked a senior manager who claimed the bank was taking on too much risk. |
| Paul Moore, the former head of risk at HBOS, said he had been fired after he warned the bank was expanding too fast. | Paul Moore, the former head of risk at HBOS, said he had been fired after he warned the bank was expanding too fast. |
| Sir James, who led HBOS from 2001 to 2006, said there was "no substance to the allegations". | Sir James, who led HBOS from 2001 to 2006, said there was "no substance to the allegations". |
| I... feel that the right course of action for the FSA is for me to resign from the FSA Board which I do with immediate effect Sir James Crosby Read Sir James Crosby's statement in full | I... feel that the right course of action for the FSA is for me to resign from the FSA Board which I do with immediate effect Sir James Crosby Read Sir James Crosby's statement in full |
| "I nonetheless feel that the right course of action for the FSA is for me to resign from the FSA board, which I do with immediate effect," he added. | "I nonetheless feel that the right course of action for the FSA is for me to resign from the FSA board, which I do with immediate effect," he added. |
| Sir James said in his statement that HBOS had "extensively investigated" Mr Moore's allegations, concluding that they "had no merit". | Sir James said in his statement that HBOS had "extensively investigated" Mr Moore's allegations, concluding that they "had no merit". |
| The FSA said: "[The] specific allegations made by Paul Moore in December 2004 regarding the regulatory risk function at HBOS were fully investigated by KPMG, which concluded that the changes made by HBOS were appropriate." | |
| Its chairman Lord Turner will write to the Chancellor by the end of the day, setting out the details of that investigation, the FSA said. | |
| 'Right' decision | 'Right' decision |
| The Treasury, for whom Sir James had worked as an adviser, said officials had been in contact with the City watchdog but pointed out that ministers had had no direct contact with either Sir James or the FSA in the last 24 hours. | |
| The Treasury told the BBC it was Sir James' personal decision to resign from the FSA. | |
| Speaking in Prime Minister's Questions, Gordon Brown said it was right that Sir James stepped down from the FSA. | Speaking in Prime Minister's Questions, Gordon Brown said it was right that Sir James stepped down from the FSA. |
| "It is right that we investigated serious allegations that are made about the banking system. These are serious but contested allegations," he said. | "It is right that we investigated serious allegations that are made about the banking system. These are serious but contested allegations," he said. |
| "In relation to Sir James Crosby, these are allegations that he will wish to defend, so it is right that he has stepped down as vice-chairman of the Financial Services Authority," he added. | "In relation to Sir James Crosby, these are allegations that he will wish to defend, so it is right that he has stepped down as vice-chairman of the Financial Services Authority," he added. |
| Opposition leader David Cameron put it to the Prime Minister that it had been a "misjudgement" to appoint Sir James to the FSA. However, Mr Brown said the allegations made by Mr Moore had been independently investigated and were found "not to be substantiated". | Opposition leader David Cameron put it to the Prime Minister that it had been a "misjudgement" to appoint Sir James to the FSA. However, Mr Brown said the allegations made by Mr Moore had been independently investigated and were found "not to be substantiated". |
| 'Summarily dismissed' | 'Summarily dismissed' |
| Mr Moore claimed he was "summarily dismissed" as the head of group regulatory risk at HBOS by Sir James. | Mr Moore claimed he was "summarily dismissed" as the head of group regulatory risk at HBOS by Sir James. |
| "He [Sir James] said I had lost the confidence of key executives and non-executives, but refused to explain why," said Mr Moore in a recent written submission to the Treasury Committee. | "He [Sir James] said I had lost the confidence of key executives and non-executives, but refused to explain why," said Mr Moore in a recent written submission to the Treasury Committee. |
| The bank says Mr Moore was made redundant following a restructuring and was replaced by a banker with 20 years' experience, who reported directly to the chief executive. | The bank says Mr Moore was made redundant following a restructuring and was replaced by a banker with 20 years' experience, who reported directly to the chief executive. |
| Mr Moore told the BBC earlier this week that he saw evidence of "negligence" and even "recklessness" during his time at the bank. | Mr Moore told the BBC earlier this week that he saw evidence of "negligence" and even "recklessness" during his time at the bank. |