Online Stock Trading - Gordon Brown's Favourite Banker Resigns
Another day another banker bites the dust! He'll be alright of course, but all the same this is geting a bit too close to Gordon Brown for comfort.
Sir James Crosby has resigned as deputy chairman of the FSA (Financial Services Authority) after criticism over his performance when he was CEO of HBOS (2001 - 2006).
It is claimed by Paul Moore, former head of risk at HBOS, that he had been sacked by James Crosby after he warned that HBOS was expanding too fast. Moore was sacked by Crosby in 2005, with Moore stating that Crosby wrote "The decision (to sack Moore) was mine and mine alone."
Sir James said there was "no substance to the allegations. .... I nonetheless feel that the right course of action for the FSA is for me to resign from the FSA board, which I do with immediate effect."
He also said that HBOS had "extensively investigated" Mr Moore's allegations, concluding that they "had no merit". [Ha ha - it turns out they had rather a lot of merit ! Nice investigation ! - Ed.]
Gordon Brown has now said in the House of Commons that the allegations were investigated and not substantiated ! [How strange that HBOS went bust! - Ed.]
Sir James is also an adviser to the Treasury and was knighted by Gordon Brown for his "services".
Gordon Brown in the House of Commons has just accused the Tories of wanting to trivialize the matter !
Iain Martin said today in the Daily Telegraph that Sir James Crosby was Brown's favourite retail banker, so when his name was dragged in to the Treasury Select Committee hearing yesterday, alarms bells should be ringing in Downing Street.
Crosby timed his departure from HBOS perfectly in 2006 to become deputy chairman of the FSA and advisor to the government on leading a task force to improve the workings of the mortgage market!
"Number 10 and the Treasury will spot the danger here. Will they hug Crosby close and hope the story does not take off? Or will they drop him like a stone? Let's see." So, well spotted Iain Martin, who has just updated his blog "Anyway, Crosby is gone. And for Brown it is the end of a beautiful friendship."
So, where does all this leave us with regard to stock trading ? It just convinces me that there is still more to come and things will be getting worse before they get better. The DOW fell over 300 points yesterday on reaction to Geithner's uninspiring rescue plan, I'm surprised the FTSE did not follow it down.
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