James Crosby, the disgraced former boss of HBOS, will pick up £850,000 from the sale of the subprime car lender Moneybarn to Provident Financial.
David Hoare, the City turnaround expert who was recently appointed to chair the schools regulator Ofsted, is also expected to reap a substantial windfall from the sale of Moneybarn, which provides finance to 2.5 million people who would struggle to get credit from regular banks.
Provident Financial, a doorstep lender that has been accused by consumer rights groups of irresponsible lending, has paid £120m to buy Moneybarn. Peter Crook, Provident's chief executive, said the acquisition of Moneybarn – "the market leader in the non-standard car finance market" – was an exciting opportunity to grow earnings.
Hoare, whose Duncton Group is the parent company of Moneybarn, has been involved in the subprime car lender since it was founded in 1992. He and his wife own one-third of Moneybarn stock.
Crosby, who relinquished his knighthood last year after a parliamentary commission named him as the architect of HBOS's downfall, was brought in to chair Moneybarn in 2011. He is set to reap £850,000 from the sale of Moneybarn, including profits running to several hundred thousand pounds, under terms of the deal first reported by Sky News.
The sale of Moneybarn signals the end of Crosby's career in finance. In 2013, he was forced to stand down as an advisor to the private equity firm Bridgement after the parliamentary committee on banking standards slated him and two fellow HBOS board members for setting the bank on a disastrous course that would have led to ruin even without the financial crisis.
Crosby's departure from Moneybarn come as the City regulator steps up scrutiny of consumer credit providers. The Financial Conduct Authority took over the regulation of 50,000 consumer finance firms in April and has introduced tighter rules on payday lenders.
Other selling shareholders include James Lupton, a former Barings banker and co-treasurer of the Conservative party. Also cashing in is Peter Norris, a former chief executive of Barings, who presided over the merchant bank when it was destroyed by a "rogue trader" in 1995.