Who else is going to punish bankers?
Last updated at 14:42, Thursday, 11 April 2013
It is refreshing and to some people, laudable, that former HBOS chief executive Sir James Crosby has asked for his knighthood to be removed and has said he will forfeit a third of his massive salary.
This will drop it from £580,000-a-year to a measly £406,000.
But why has it been deemed that it should only be 30 per cent of his pension? Should he be inflicting punishment on himself? Who sits in judgement on all this? The pension was a contractual entitlement and not all of this was accumulated during his years at HBOS.
To be fair, he has acted with more dignity and, dare I say it, honour, than Fred Goodwin, the former CEO who ran up a £24billion loss. He, too, took a 30 per cent cut in his exorbitant pension (seems to be the going rate) but he also trousered a £2.6m tax-free lump sum.
All this follows last week’s critical report into the bank’s collapse during the financial crisis.
Sir James served as chief executive at HBOS between 2001 and 2006. The Banking Standards Commission report called him the “architect” of the strategy that led to HBOS’ downfall.
But what of his successor Andy Hornby, and his chairman, Lord Stevenson? What measures will be taken against them?
Crosby’s request to strip him of his title will now be considered by a Whitehall honours committee.
But the question remains, just what sort of regulatory body do we have governing banking? Does it have any real powers?
First published at 14:41, Thursday, 11 April 2013
Published by http://www.newsandstar.co.uk
Have your say
A bit late, closing the gate after the horse has bolted. What about the ones who got us into this mess, now swanning around in the Med on their fancy yauchts or flying around in their Ferraris. To late, the crime has been committed and they have got away with it scot free and with massive a bonus to boot.
Its not more regulation thats required its simpler and better regulation.For example : No deposit taking bank should be able to trade on its own account. This removes reams of opaque practices and is far simpler to administer from the regulators point of view.
It would make them able to go bust Without Tax payers having to be involved ala Berings .
Will it happen ? no way we are 5 years after the crash and not 1 piece of legislation has been enacted to prevent a recurrence of 2008 and in many ways we are worse off as we are now committed to financing loans and mortgages for many years to come.
Our major party politicians are not capable of producing legislation as they are part of the problem not the solution.
Not voting for any of the major parties and getting enough independents into parliament would be the only message they will listen to.
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