• From The BBC:

    Risk managers at HBOS were discouraged from challenging business decisions, a former employee has told BBC News.
    Anthony Smith said the risk group’s culture changed in 2005 after his boss Paul Moore was replaced by someone with no experience of risk or regulation.
    “There was definitely a dumbing down of the risk function and challenging the business… was not welcome,” he said.
    The bank said Mr Smith was a “junior employee” and the new director of risk was a “senior banker”.
    How HBOS was run has come under question in recent weeks after Paul Moore, former head of regulatory risk, alleged he was sacked after warning the bank about excessive risk-taking.
    HBOS denied the allegations and pointed out an inquiry had concluded they were “unfounded”, but the publicity led to the resignation of former HBOS chief executive Sir James Crosby as deputy chairman of the City watchdog the Financial Services Authority (FSA).
    ‘No knowledge’
    Anthony Smith, who worked for the banking group as a ma…

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    Posted by Jon @ 7:01 pm

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