David Cameron won't remove ex-HBOS chief James Crosby's knighthood

David Cameron has refused to push for Sir James Crosby, the former HBOS chief executive, to be stripped of his knighthood for his disastrous management of the bank.

Sir James resigned this morning after the Parliamentary Commission on Banking Standards published its damning account into the fall of HBOS and explicitly blamed three men at the top. Photo: PA

12:42PM BST 08 Apr 2013

Downing Street today signalled that the Prime Minister will not intervene over Sir James’ honour as he did last year when he pushed for Fred Goodwin to lose his knighthood over the collapse of RBS.

Sir James was last week condemned by a parliamentary report into the financial services industry, which said he shared “primary responsibility” for the demise of HBOS, which was rescued by Lloyds Banking Group when it neared collapse in 2008.

Sir James has lost at least one business post since the report was published. Vince Cable, the Business Secretary, has suggested that Sir James should be barred from holding directorships.

Scottish politicians, including some Conservatives, have called for Sir James to lose the knighthood he was awarded in 2006 for services to the banking industry.

Mr Cameron has previously intervened in controversies over banking leaders implicated in the financial crisis, most notably by having Mr Goodwin stripped of his knighthood.

Such decisions are technically taken by the Forfeiture Committee of senior civil servants, but Mr Cameron publicly backed calls for the committee to remove Mr Goodwin’s knighthood
Last January, Mr Cameron told MPs that the committee would meet to consider Mr Goodwin’s case. It duly met and recommended the removal of his honour, a decision Mr Cameron publicly welcomed.
Sir Bob Kerslake, the civil servant who chairs the committee, subsequently said that it acted because it “had a signal” from the Prime Minister to consider Mr Goodwin’s case.
Despite last year’s events, Mr Cameron’s official spokesman today insisted that the Prime Minister does not get involved in the committee’s business.
Asked about Sir James’ honour, the spokesman told reporters at Westminster: “In terms of honours, those are always a matter for the Forfeiture Committee. The Prime Minister very clear view is that it is a matter for the Forfeiture Committee.”
He added: “The Government doesn't comment on the discussions or deliberations of the Forfeiture Committee.”
The decision to strip Mr Goodwin of his honour sparked criticism from some Conservative MPs, who accused the Prime Minister of trying to satisfy a public “blood-lust” for punishing bankers.