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HBOS executives 'threatened' colleagues who questioned risk-taking HBOS executives 'threatened' colleagues who questioned risk-taking
(35 minutes later)
HBOS executives threatened and swore at colleagues who were investigating the risks being taken by the banking group before it collapsed during the financial crisis.HBOS executives threatened and swore at colleagues who were investigating the risks being taken by the banking group before it collapsed during the financial crisis.
The claim was made by Paul Moore – the former HBOS head of group regulatory risk who was sacked after raising concerns about the bank's management – during the latest session in front of the parliamentary commission on banking standards committee on Tuesday. The claim was made by Paul Moore, the former HBOS head of group regulatory risk who was sacked after raising concerns about the bank's management, during the latest session in front of the parliamentary commission on banking standards committee on Tuesday.
"When I tried to resolve the previous difficulties with Jo Dawson [HBOS group risk director 2004-2005 who eventually replaced Moore], she leant over the table - she stood up - pointed at me and said 'I'm warning you. Don't you make an effin' enemy out of me.' It demonstrated that if a senior executive thought it was perfectly OK to speak to the head of regulatory risk in that tone you can imagine how the culture spreads through the organisation." "When I tried to resolve the previous difficulties with Jo Dawson [HBOS group risk director 2004-2005 who eventually replaced Moore], she leant over the table – she stood up – pointed at me and said 'I'm warning you. Don't you make an effin' enemy out of me.' It demonstrated that if a senior executive thought it was perfectly OK to speak to the head of regulatory risk in that tone you can imagine how the culture spreads through the organisation."
"It didn't matter what you were doing, if your job was to check people out, there was behaviour that was threatening and unpleasant to people doing these [risk assessment] activities," Moore also said, before telling the committee that HBOS was "worse than other environments [he'd] experienced" while "sales targets and bonuses linked to sales targets were right at the heart of this". Moore said that the sales culture had been driven by former chief executive Sir James Crosby. "It didn't matter what you were doing, if your job was to check people out, there was behaviour that was threatening and unpleasant to people doing these [risk assessment] activities," Moore also said, before telling the committee that HBOS was "worse than other environments [he'd] experienced", while "sales targets and bonuses linked to sales targets were right at the heart of this". Moore said the sales culture had been driven by former chief executive Sir James Crosby.
The comments by Moore are the latest about how he saw the collapse of the lender, which has made him one of the better known players in the story of the UK's financial crisis. The comments by Moore are the latest about how he saw the collapse of the lender, which has made him one of the better-known players in the story of the UK's financial crisis.
In 2009 he told MPs that he had been sacked for raising concerns about the lender's rapid growth in the years before the credit crunchHBOS executives 'threatened' colleagues who questioned risk-taking, while he has also submitted detailed reports to the Financial Services Authority on what went wrong at the bank. During Tuesday's appearance, he repeated many of his previous criticisms. In 2009 he told MPs he had been sacked for raising concerns about the lender's rapid growth in the years before the credit crunch; HBOS executives "threatened" colleagues who questioned risk-taking; while he has also submitted detailed reports to the Financial Services Authority on what went wrong at the bank. During Tuesday's appearance, he repeated many of his previous criticisms.
After his dismissal, a report into Moore's allegations - commissioned from the bank's auditors, KPMG - concluded that he lost his job because of personality clashes inside the lender in 2004 and not that Crosby sacked him because of warnings that HBOS was "going too fast" and "was a serious risk to financial stability and consumer protection". After his dismissal, a report into Moore's allegations – commissioned from the bank's auditors, KPMG – concluded that he lost his job because of personality clashes inside the lender in 2004 and not that Crosby sacked him because of warnings that HBOS was "going too fast" and "was a serious risk to financial stability and consumer protection".
Moore told the committee that the accounting firm had concluded exactly what he expected. "The KPMG report said I was a lunatic and they were right - in summary," he said. Moore told the committee the accounting firm had concluded exactly what he expected. "The KPMG report said I was a lunatic and they were right – in summary," he said.
Colin Matthew, the former chief executive of HBOS's international division and Dawson are scheduled to give evidence later on Tuesday. Colin Matthew, the former chief executive of HBOS's international division, and Dawson are scheduled to give evidence later on Tuesday.