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View Full Version : A banking inquiry that names the reckless, the failures and the corrupt: Halifax Bank of Scotland



PaddyJoe
05-04-2013, 01:26 AM
The report reveals that the bank was so badly run that it would have failed even without the meltdown of September 2008.

The Banking Standards Commission has asked the Financial Services Authority (FSA) to consider if three top HBOS bankers should be barred from future roles in the financial sector.It said former bosses Sir James Crosby and Andy Hornby were largely to blame for the collapse of HBOS, then the UK's fifth biggest bank, in 2008.
Former chairman Lord Stevenson was also heavily criticised.
The commission accused the trio of a "colossal failure" of management.

The report, called "An Accident Waiting to Happen" said that 20.5bn of public money went into the rescue of HBOS before and after its merger with Lloyds.
The commission concluded that two former chief executives, Sir James Crosby and Andy Hornby, were mainly to blame for the collapse of the bank, together with its former chairman, Lord Stevenson.
"The primary responsibility for the downfall of HBOS should rest with Sir James Crosby, architect of the strategy that set the course for disaster, with Andy Hornby, who proved unable or unwilling to change course, and Lord Stevenson, who presided over the bank's board from its birth to its death," said the report.

The commission published its report after taking evidence from 16 former HBOS bankers and those who regulated the bank. Stevenson, a crossbench peer who has been employed by governments to conduct a series of high-profile reports, now works for a number of charities.Hornby, who took over as chief executive from Crosby and was regarded as the business wunderkind of his generation, is now boss of bookmakers Coral.
The report is scathing about Stevenson, who in his evidence (http://www.guardian.co.uk/business/2012/dec/04/former-hbos-chairman-lord-stevenson-mps) had insisted he was not to blame because he was only "part time", despite earning 735,000 a year and insisting to regulators at the time that he was fully engaged at the bank.
Stevenson was "incapable of facing the realities of what placed the bank in jeopardy from that time until now".
The report added: "We are shocked and surprised that, even after the ship has run aground, so many of those who were on the bridge still seem so keen to congratulate themselves on their collective navigational skills."
In other evidence, HBOS board members had described the board as the best they had ever sat on, which sparked the commission to conclude: "The model of corporate governance at HBOS at board level serves as a model for the future but not in the way in which Lord Stevenson and other former board members appear to see it. It represents a model of self-delusion, or the triumph of process over purpose."
http://www.guardian.co.uk/business/2013/apr/04/bankers-brought-down-hbos

jpc
05-04-2013, 10:57 PM
Why would authors of such reports in this country feel the need not to out blatant incompetence?
Are they scared of being sued or blacklisted from future jobs if they lay out the complete story?
Are they given access to all the facts?
And this commercial confidentiality that is trotted without any journalist asking the PR boys to explain what exactly that means in the context of still totally insolvent banks?

Slim Buddha
06-04-2013, 04:49 AM
Why would authors of such reports in this country feel the need not to out blatant incompetence?
Are they scared of being sued or blacklisted from future jobs if they lay out the complete story?
Are they given access to all the facts?
And this commercial confidentiality that is trotted without any journalist asking the PR boys to explain what exactly that means in the context of still totally insolvent banks?

1. Accountability of any kind is an alien concept in Ireland
2. Irish libel laws are designed to protect the guilty.
3. If such access can be prevented, it will be.
4. All major Irish financial institutions are insolvent and require taxpayers money to keep them afloat. Nevertheless, employees of some of these get paid 843,000+.Journalists in Ireland are conditioned not to ask difficult questions.