Life bans considered for HBOS captains
British Business Secretary Vince Cable says he has ordered an investigation to see whether three former bosses of collapsed British bank HBOS could be banned for life from being company directors.
Mr Cable said he asked his officials to investigate whether there were grounds to launch formal proceedings against them, London's Sunday Times reports.
The influential parliamentary commission on banking standards attacked the group's ex-chairman, Lord Stevenson, and previous chief executives Sir James Crosby and Andy Hornby, in a review published on Friday.
It said they should be banned by regulators from working in the financial sector ever, according to their report into the lender's collapse.
The panel of MPs blamed the men's "toxic misjudgments" for a collapse which sparked a £20.5 billion bailout at the height of the financial crisis.
Mr Cable said he has asked his officials to look into the directors' conduct while at HBOS to see if a formal investigation under the Company Directors Disqualification Act should be carried out.
That would be the "first step" in a process that could lead to them being banned as company directors for life. "There are things I am able to do. It's quite a legalistic process. I can ask [officials] to look at whether the companies investigations branch take action."
Halifax Bank of Scotland [HBOS] was saddled with high-risk investments in the property sector and was rescued by Lloyds TSB in a 2008 takeover that was brokered by the then Labour government.
Lloyds Banking Group subsequently received a huge bailout from the state and remains 39 per cent owned by the taxpayer.
InvestSMART FORUM: Come and meet the team
We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.
Want access to our latest research and new buy ideas?
Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.Sign up for free