Life bans considered for HBOS captains
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.
Frequently Asked Questions about this Article…
Vince Cable has asked his officials to investigate whether there are grounds to launch formal proceedings against three former HBOS bosses under the Company Directors Disqualification Act — a first step that could ultimately lead to lifetime bans from being company directors.
The parliamentary review singled out ex‑chairman Lord Stevenson and former chief executives Sir James Crosby and Andy Hornby as the three former HBOS bosses under scrutiny for potential disqualification from director roles.
A parliamentary commission on banking standards accused the three men of 'toxic misjudgments' that contributed to HBOS’s collapse, and its report recommended regulators should consider banning them from working in the financial sector ever again.
The Company Directors Disqualification Act is the legal basis mentioned in the article for formally investigating directors’ conduct. Mr Cable asked officials to assess whether an investigation under that Act — a legalistic process — should be started, which could lead to director disqualification.
HBOS’s collapse required a £20.5 billion bailout at the height of the financial crisis. HBOS was rescued by Lloyds TSB in a 2008 takeover, and Lloyds Banking Group later received a huge state bailout and remains 39% owned by the taxpayer, according to the article.
The article says Halifax Bank of Scotland (HBOS) was saddled with high‑risk investments in the property sector, a major factor that led to its failure and subsequent rescue.
The article describes the investigation as focused on former HBOS directors’ conduct. It notes Lloyds TSB rescued HBOS in 2008 and that Lloyds Banking Group received a large state bailout and remains 39% taxpayer‑owned, but it does not report any direct regulatory action against Lloyds itself.
The recommendation came from the influential parliamentary commission on banking standards. Their review, published on Friday and reported in the Sunday Times, attacked the three men and said regulators should ban them from working in the financial sector for life.
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