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| Version 9 | Version 10 |
|---|---|
| Sir James Crosby resigns from FSA | Sir James Crosby resigns from FSA |
| (about 1 hour 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). |
| The move follows allegations that, when head of HBOS, he sacked senior manager Paul Moore after raising concerns the bank was exposed to too much risk | The move follows allegations that, when head of HBOS, he sacked senior manager Paul Moore after raising concerns the bank was exposed to too much risk |
| 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". |
| But Paul Moore said he stood "firmly and confidently" behind his allegations against Sir James. | But Paul Moore said he stood "firmly and confidently" behind his allegations against Sir James. |
| The BBC's business editor Robert Peston said he understood that Sir James had stood down to protect the FSA from controversy. | The BBC's business editor Robert Peston said he understood that Sir James had stood down to protect the FSA from controversy. |
| 'Right action' | 'Right action' |
| I... feel that the right course of action for the FSA is for me to resign 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 Sir James Crosby Read Sir James Crosby's statement in full |
| Sir James said in his statement that HBOS had "extensively investigated" Mr Moore's allegations, concluding that they "had no merit". Mr Moore was the former head of risk at HBOS. | Sir James said in his statement that HBOS had "extensively investigated" Mr Moore's allegations, concluding that they "had no merit". Mr Moore was the former head of risk at HBOS. |
| "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," Sir James 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," Sir James added. |
| 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." | 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. | 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. |
| 'No blame' | 'No blame' |
| Whistleblower on Crosby resignation | |
| Mr Moore later released a statement in reaction to Sir James' resignation. | Mr Moore later released a statement in reaction to Sir James' resignation. |
| He said: "I read with interest that Sir James continues to refute the allegations I made in my evidence to the Treasury Select Committee and I want all those interested to know that I continue to stand firmly and confidently behind what I have said." | He said: "I read with interest that Sir James continues to refute the allegations I made in my evidence to the Treasury Select Committee and I want all those interested to know that I continue to stand firmly and confidently behind what I have said." |
| He was not interested in blame and had received countless messages of support, he added. | He was not interested in blame and had received countless messages of support, he added. |
| The Treasury, for which 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, for which 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. |
| SIR JAMES CROSBY Born 1956. Educated at Brasenose College, OxfordJoined the Halifax in 1994 and became chief executive in 1999Became chief executive of HBOS in 2001 following the merger of the Halifax with the Bank of ScotlandLeft HBOS in 2006Led two inquiries for the Treasury: The first in 2006 on identity fraud, the second in 2008 on the mortgage marketHas been deputy chairman of the Financial Services Authority since 2004 Read Nick Robinson's blogRead Robert Peston's blog | |
| The Treasury told the BBC it was Sir James' personal decision to resign from the FSA. | The Treasury told the BBC it was Sir James' personal decision to resign from the FSA. |
| 'Serious error' | 'Serious error' |
| 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. |
| The episode has given the Prime Minister's enemies their first chance to link Gordon Brown personally with someone who, it is alleged, ignored warnings that brought down the Halifax, says the BBC's political editor Nick Robinson. | The episode has given the Prime Minister's enemies their first chance to link Gordon Brown personally with someone who, it is alleged, ignored warnings that brought down the Halifax, says the BBC's political editor Nick Robinson. |
| Opposition leader David Cameron accused the Prime Minister of a "serious error of judgment" in appointing Sir James to the FSA. | Opposition leader David Cameron accused the Prime Minister of a "serious error of judgment" in appointing Sir James to the FSA. |
| David Cameron: Gordon Brown should admit he's made a mistake | |
| Michael Fallon, a Conservative MP on the Treasury Committee, said there were questions not only over the dismissal of Paul Moore from HBOS but over how the bank got into financial trouble. | Michael Fallon, a Conservative MP on the Treasury Committee, said there were questions not only over the dismissal of Paul Moore from HBOS but over how the bank got into financial trouble. |
| Under Sir James, HBOS had made "mistakes other banks didn't make", he said. | Under Sir James, HBOS had made "mistakes other banks didn't make", he said. |
| The Treasury Committee had received written evidence from Mr Moore on Tuesday. | The Treasury Committee had received written evidence from Mr Moore on Tuesday. |
| '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. |