Wednesday, 11 February 2009

Revenge of the whistleblower: HBOS executive sacked and gagged for warning of disaster reveals truth to MPs

One of Gordon Brown's top advisers was accused last night of sacking a whistleblower who warned that banks were heading for disaster.

Sir James Crosby, currently deputy chairman of the Financial Services Authority, was the chief executive of HBOS at the time.

The man he sacked, Paul Moore, took his revenge in evidence to a Commons committee.

He said Sir James was the 'original architect' of the strategy that led HBOS into near-collapse.

Paul Moore
James Crosby

'Sacked and gagged': Former HBOS risk chief Paul Moore (left) claims he was dismissed by Sir James Crosby (right) after warning the bank was out of control

Mr Moore, who held a senior post at the bank between 2002 and 2005, said anyone 'not blinded by money, power and pride' knew there was something wrong.

He warned the HBOS board but was 'summarily dismissed' by Sir James and subjected to a ' gagging' order.

In a dramatic session of the Treasury select committee, four other former bankers expressed 'profound' apologies for the failure of their banks.

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