Ex-HBOS chief James Crosby stripped of knighthood

Sir James Crosby
James Crosby

Former HBOS chief executive James Crosby has been formally stripped of his knighthood following a damning report into the bank’s collapse.

Crosby was HBOS chief executive from its creation in 2001 following the merger of Halifax and Bank of Scotland to 2006. He was also FSA deputy chairman from 2007 to 2009.

Crosby said he would give up his knighthood in April alongside 30 per cent of his pension pot after a Parliamentary Commission on Banking Standards report called for Crosby, ex-chief Andy Hornby and chairman Lord Stevenson to be banned from working in financial services.

Commission chair Andrew Tyrie said in the report Crosby was the “architect” of the strategy that led to HBOS’ downfall. HBOS was forced to merge with Lloyds Banking Group in 2008 to avoid collapse with the Government taking a 42 per cent stake in the merged bank.

The UK Cabinet posted news of Crosby’s annulled knighthood in the London Gazette, which says: “Letters Patent dated 11 June 2013 have passed the Great Seal of the Realm cancelling and annulling the Knighthood conferred upon James Robert Crosby on the 6 December 2006 as a Knight Bachelor.”

Crosby is the second bank boss to be stripped of its knighthood, joining Fred Goodwin who had his knighthood annulled in January 2012.