The United Kingdom’s Business Secretary Vince Cable has initiated an investigation into three former HBOS directors following a damning Parliamentary Commission on Banking Standards report on the collapse of the HBOS plc banking and insurance company .
The investigation which Cable warns is the “first step” seeks to establish whether the trio blamed for the collapse can be stripped of their right to work as company directors for life.
Officials have reportedly been tasked to gather evidence against Lord Stevenson – the former HBOS chairman, Sir James Crosby – the former HBOS chief executive, and Andy Hornby – Crosby’s successor under the Company Directors Disqualification Act.
The report found Lord Stevenson and Andy Hornby along with Sir James Crosby, who was described as “the architect of the strategy that set the course for disaster”, as being primarily responsible for the collapse due to “toxic misjudgements” that led to the taxpayer footing a GBP 20.5 billion bailout.
According to Cable, the UK Government has legitimate power to ban the three from ever serving as company directors again, “It’s quite a legalistic process. I can ask [officials] to look at whether the companies investigations branch take action. We do have this power,” he said.
Gambling firm Gala Coral said it stands firmly behind its chief executive officer Andy Hornby, “Coral is performing extremely well, and we are really pleased with the great job Andy is doing.”