Margo MacDonald says HBoS chief should stand down

Published on Monday 29 September 2008 09:59

THE former head of Halifax Bank of Scotland should stand down from his Government-appointed role of investigating the mortgage finance market, MSP Margo MacDonald said today.

Sir James Crosby was appointed by Mr Darling in April to lead the review, and his interim report was published in July.

Ms MacDonald questioned his position with the review group following the planned takeover of HBOS by Lloyds TSB.

The MSP also said in a letter to Alistair Darling that the current chief executive of HBOS, Andy Hornby, said in a newspaper interview last week: "I took over a business model, I have run with the model."

She went on: "His predecessor, Sir James Crosby, currently deputy chairman of the FSA, would presumably have been the HBOS executive with the final responsibility for designing the business model that is now attracting criticism from a wide range of bankers and other figures in the financial services."

Ms MacDonald told the Chancellor: "Should you not consider asking Sir James Crosby to tender his resignation from this investigation?"

She went on: "The credibility of any report following an investigation by Sir James, at best, will be doubtful.

"Both public and professionals will be sceptical about its findings if the author and his policies are judged to have helped create the problem in the housing market."