Crosby Damage Limitation

Sir James Crosby et al are now on a damage limitation exercise, albeit one that is portrayed as being contrition and repentance.

Sir James has asked to have his knighthood removed, and has offered to give up 30% of his £580K per annum pension.

The Telegraph quotes him saying that he was "deeply sorry for what happened at HBOS and the ensuing consequences for former colleagues, shareholders, taxpayers and society in general”.

Andry Hornby, who succeeded Crosby in HBOS in 2006, is under pressure to do something similar.

All very well, maybe but will it be enough to avoid further investigations/retribution?

Peter Cummings Fined £500K

The FSA has fined former HBOS director Peter Cummings £500K, and banned him for life from working in the City.

Tracey McDermott, director of enforcement and financial crime at the FSA is quoted in the Telegraph:

“Despite being aware of the weaknesses in his division and growing problems in the economy, Cummings presided over a culture of aggressive growth without the controls in place to manage the risks associated with that strategy.

Instead of reacting to the worsening environment, he raised his targets as other banks pulled out of the same markets." 

However, do not shed too many tears for Cummings, Cummings left HBOS in 2009 with a payout of £600K; so he's still £100K up on the deal!