HBOS *sacked* head of risk who warned them of dangers in 2005

WTF?_2

You couldn't make this up:

http://news.bbc.co.uk/1/hi/uk_politics/7882119.stm

Sir James Crosby allegedly sacked HBOS executive Paul Moore in 2005 after he warned the bank's board about its potentially dangerous "sales culture".

Sir James was HBOS' chief executive at the time and is now the deputy head of the Financial Services Authority.

..
Mr Moore, who was head of group regulatory risk at HBOS, has told the BBC there was evidence of "negligence", questions of "breach of principles" and even "recklessness" at the bank.

In a Newsnight interview, he said: "I realised the bank was moving too fast and I raised those challenges very strongly at board level. I also raised issues of cultural indisposition to challenge and inappropriate behaviours, and ultimately I was sacked."

Earlier, in written evidence to the Treasury select committee, Mr Moore said the crisis which drove HBOS to the brink of collapse could have been avoided if there had been adequate systems to hold bank chiefs in check.

He said: "I told the board they ought to slow down but was prevented from having this properly minuted by the chief financial officer.
"I told them that their sales culture was significantly out of balance with their systems and controls."
Mr Moore said that, after suing for unfair dismissal, he received "substantial damages" but was subjected to a "gagging order" preventing him from speaking out.

He had decided to talk publicly about the issue now because, he said, "the public interest demands it".

So - HBOS gets warned by their own Head of Risk who is promptly silenced and sacked by Crosby - who subsequently gets made Deputy Head of the FSA (who are supposed to keep the financial sector under control) and is a key advisor to Gordon Brown.

What's more, this moron was put in charge of making a report that would set the direction for 'reviving the mortgage market' - the infamous 'Crosby Report'!

http://news.bbc.co.uk/1/hi/business/7530799.stm


Bloody hell, get these cretins out before they do any more damage! :mad:

ad9898_3

I was going to post a response to this, however you have summed it up perfectly.

chambta

How could it be allowed that Crosby was part of the FSA whilst employed by HBoS? Conflict of interests?

amcluesent

Sadly, we lack the investigative journalism of a Harold Evans' at the Sunday Times which might get underneath the cronyism and corruption that defines NuLabour and those within Blair/Clown's 'big tent'.

Instead we have the 'son of Labour Lord' Peston taking instructions from Clown and spinning on the supine, complicit BBC.

For a similar incestuous circuit of profiteering and politics, look at the 'in crowd' of the internet service providers, the regulator Ofcom and those who've made a nice career/gold-plated pension "protecting" us from paedophile material on the net.

purch

HBOS gets warned by their own Head of Risk who is promptly silenced and sacked by Crosby

On the other hand, it shouldn't be so big a surprise that something like this happened.

When an organisation like HBOS thinks it has found a 'foolproof' way of making Billions, the last person they want around is 'someone who is singing from the wrong hymnsheet'.

The levels of greed and downright stupidity that are being revealed beggar belief.

icefall

I know just saw some snippets on C4 news and it all beggars belief.

The attitude of these chief execs leaves a lot to be desired imo :mad:

setmefree2

!!!!!!? wrote: »

You couldn't make this up:

your right there.

Don't know if you seen Harry Markopolos' testimony to the House Financial Services Committee on him trying to blow-the-whistle on Madoff - it ran like a movie script...

Dylanwing

And look at how NHS/ Civil service whistleblowers have been persecuted. It is all one big cosy, corrupt club at the top, and they don't want the proles knowing the truth.

airhostess

Why bother employing a 'Head of Risk' anyway, in that case? Ah right, it was just another box ticking exercise... to fulfill requirements probably set down by the FSA. Round and round...

Cleaver

amcluesent wrote: »

Sadly, we lack the investigative journalism of a Harold Evans' at the Sunday Times which might get underneath the cronyism and corruption that defines NuLabour and those within Blair/Clown's 'big tent'.

Instead we have the 'son of Labour Lord' Peston taking instructions from Clown and spinning on the supine, complicit BBC.

For a similar incestuous circuit of profiteering and politics, look at the 'in crowd' of the internet service providers, the regulator Ofcom and those who've made a nice career/gold-plated pension "protecting" us from paedophile material on the net.

I understand your point Mr Cluesent and enjoy your posts as normal but, without getting Brass Eye about all this, I think it's quite a good thing that we pay people to prevent child !!!!!! on the internet.

I agree that our media need more teeth and objectivity but I don't think they do too bad a job when compared to the newspapers, TV and media of other countries.

With regard to Peston I think he has just as much interest in his own status, celebrity and self-importance as he does spinning stories for anyone. I think he'd be happy writing for Heat magazine as long as he face was at the top of the column.

vivatifosi

I watched this live on TV this morning and couldn't believe what they were saying. Not only did they remove the head of risk, they replaced them with someone with a sales background and when the panel repeatedly asked if they had any experience of risk they said they had (sorry if I'm paraphrasing here) that they had extensive banking experience. Then - total class - Hornby the toad named the person involved as if to say "I'm up !!!!!! creek, so I'll name her too".

Then we had the Chairman of RBS not being able to answer the question as to whether he had considered the exchange rate risk associated with buying business in America (blank look), which ended in his being asked if he'd taken any advice on professional negligence.

You're right !!!!!!, you couldn't make it up.