Thursday, 12 February 2009

Sir James Crosby - The Resignation Letter

'In the light of recent media coverage I have decided to issue a short statement. Just over three years ago I resigned my position as CEO of HBOS, taking with me accumulated savings from my £1.5 million a year salary and a £9 million pound pension pot, and leaving some other poor bastard to take the rap for the crap I had been warned was coming. Towards the end of my time as CEO of HBOS, as part of a wider restructuring of group functions, the Risk Function was elevated to report direct to the CEO, which is how I knew when to get out of Dodge.

A few years before this I forced our Senior Group Risk Manager, Paul Moore, to leave HBOS. This was becasue he was telling me things might get shitty, but I had not yet trousered enough money. When sacked, he complained, but we hushed this up by getting our tame auditors to whitewash a report, which was good enough to fool the FSA.

That whitewash concluded that Mr Moore's allegations had no merit. Last autumn (on a BBC programme) and again yesterday at the Treasury Select Committee he repeated substantially the same allegations that I had sacked him for telling me about the high risks HBOS was running.

HBOS has reiterated its view that his allegations have no merit. Questions have also been raised about my relationship with Gordon Brown, and were we bum chums.

During the last two years I have devoted considerable time to producing two reports for the Government; the first on identity assurance and ID cards (published last March) and the second on mortgage finance (published last November). Both of these are full of bullshit and cockwaffle, so fulfilling the remit Gordon gave me.

I am confident that anyone who either worked with me on the reports or indeed anyone who has read them will conclude that they are the work of someone who is genuinely subservient to government.

In addition I want to emphasise that I have absolutely no political connections or affiliations other than an unnaturally close friendship with Gordon Brown. I am full of admiration for my colleagues at the FSA and the way they do fuck all for large salaries.

As a non-executive director I have an absolute responsibility to ensure that I do not make waves for Gordon Brown now all this has come on top. Therefore, whilst I am totally confident that there is no substance to any of the allegations, 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.'

The Penguin


Shirking From Home said...
This comment has been removed by the author.
Shirking From Home said...

Paul Moore is a marked man now. Better not go down to the woods today.

Menelaus said...
This comment has been removed by the author.
Letters From A Tory said...

"I am totally confident that there is no substance to any of the allegations"

The bad news is that the guy he allegedly fired is totally confident of bringing Crosby down.

Bastard Bankers said...

You can't do that! dangle a snip of gossip to OH and not give the rest of us taste!!

Oldrightie said...

Bastard Bankers said...
You can't do that! dangle a snip of gossip to OH and not give the rest of us taste!!

The noose is tightening. Too many David Kellies to cope with. Patience BB.
OT, your handle might be perceived as more accurate if you added "and Labour".

More Bastard Bankers said...

Having watched the Goodwin et al in front of the select committee I conclude that these guys really don't get it. They honestly believe like Gordon that this is a global problem that started in America that could not have been foreseen by anyone. That those who pointed to the risks were pathetic killjoys and needed sacking.
Since the turn of the millennium Banks had evolved into trading companies - trading companies need to be run by traders not lawyers, not accountants and probably not even bankers. They bought money in one time frame and sold it in another and failed to recognise that they were exposing shareholders and depositors to massive risk - I hear from inside one of the banks that the bad news is far from being all on the table.

Gareth said...

The major thing these banksters at the Banks, The Bank, The FSA and The Treasury used to appreciate but no longer do, is that the capital in the financial system ought to come from depositors not taxpayers or made up money.

A decade or more ago they all agreed to start down a path where more and more funding came from funny money whizz-bang financial products that they have hopelessly misunderstood the risks of.(Credit ratings, as with financial audits, are a snapshot in time not a guarantee of future performance) They were too reliant on a growing housing market - illustrated by The Bank's decision to keep pumping the housing market in about 2004 rather than let it have a controlled deflation, despite it's remit merely to keep inflation in check. So desparate were they to keep the good times rolling politically as well as financially.

At it's simplest, banks turned assets (mortgages) into liabilities for themselves (securitised debt obligations - whereby they retain the mortgages but have agreed to pass a proportion of the income from the mortgage to someone else). They tried to play a margins game based on raking in fees for remortgages, cdos and other things and it could only work when things were going well. So blinkered were they that NINJA loans were not seen as a risk. So lopsided were their business models that when the credit ratings for their 'assets' started deteriorating they couldn't find enough capital to add to their capital reserves.

These are supposed to be the brightest and the best. Top Men.

They should be hanged from Tower Bridge for what they have done.

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