What a week was last week.
HBOS's former executives on the back foot over risk management procedures whilst whistleblower and former Group Head of Risk at HBOS, Paul Moore, packs a few sucker punches to say no-one listened to his warnings about leverage.
One person in particular ignored and then sacked Mr. Moore: Sir Jim Crosby, the Deputy Chairman of the Financial Services Authority (FSA) and former CEO of HBOS who allegedly got them into this mess … according to Moore and Hornby's testimony this week.
So Sir Jim resigns and Gordon Brown, the UK Prime Minister, is hauled in front of the Treasury Select Committee to ask whether he knew of any of Paul Moore's concerns when he was Chancellor back in 2003, especially as Sir Crosby and Mr. Brown are known to be chummy.
Gordon Brown says 'no', his office knew nothing. Then Paul Moore says he has evidence to prove Gordon Brown did know.
This could see Gordon Brown being forced to resign or face a vote of no confidence in Parliament.
Meanwhile, Lloyds share price suffers a 35% devaluation on Friday afternoon, as they announced a write-off of £10 billion for HBOS's bad debts:
What amazes me is that these debts were known back in December when the deal was consumated. Back then, HBOS announced an £8 billion write-down … Lloyds have just increased it to £10 billion.
Whatever, the whole industry is being flagellated for the errors of their ways, as illustrated by the furore of Lloyds still paying out £120 million in bonuses to staff.
These are to cashiers and tellers, not investment bankers on millions, but the media don't bother differentiating … they just call it the 'bonus culture' of the fat bankers.
They also don't bother to say that Lloyds TSB would have turned in a healthy >£2 billion profit for 2008 if it weren't for HBOS.
Nothing like balanced reporting is there …