News Column

Windfall for Crosby

August 15, 2014

By James Salmon, Daily Mail, London

Aug. 15--The former banker described as the 'architect' of the HBOS collapse is in line for an pounds sterling 850,000 windfall from the sale of the car finance company of which he is chairman

James Crosby, who ran HBOS for seven years before the financial crisis, will scoop the six-figure jackpot after the pounds sterling 120m takeover of Moneybarn by doorstep lender Provident Financial, announced yesterday.

Crosby is understood to have acquired a 1pc stake in Moneybarn's parent company Duncton Group when he became chairman in 2011.

The windfall will draw a line under his last remaining chairman role.

The disgraced former banker, who became the deputy chairman of the City watchdog after leaving HBOS in 2006, became the first man to forfeit his knighthood for more than 60 years, after being blamed for the collapse of HBOS.

In a sensational admission of guilt, Crosby said he was 'deeply sorry' for the disaster that unfolded at the banking giant.

A damning report by the Parliamentary Commission on Banking Standards had singled him out as 'the architect of the strategy that set the course for disaster' and savaged his 'reckless incompetence' as chief executive.

He is still thought to enjoy an HBOS pension of more than pounds sterling 400,000, after forfeiting 30pc of his pounds sterling 580,000 a year pension. But he was forced to quit his pounds sterling 125,000-a-year job as a senior independent director of the catering giant Compass, having lost two other major roles in the wake of the scandal.

Crosby, 58, who was knighted in 2006 for services to the finance industry, said he believed it was right that 'I should now ask the appropriate authorities to take the necessary steps for its removal'.


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Source: Daily Mail (London, England)

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