LONDON Dec 3 Former HBOS Chief Executive James
Crosby said there were deficiencies in information given to
management in the years leading up to the bank's near collapse
in 2008 and some of the risks being taken were underestimated.
"With the benefit of hindsight it seems that, not
withstanding improvements made after I departed, it was
deficient in a number of ways; particularly the quantification
and stress testing of corporate risks," Crosby said.
Crosby, who served as chief executive of the bank between
2001 and 2005, said that there was general unanimity in the
boardroom around the group's strategy, although some divisions'
plans "carried less support than others," prompting "good
debates" at board level.
In written evidence to UK lawmakers before his appearance
before the Parliamentary Commission on Banking Standards later
on Monday, Crosby said that, with hindsight, the bank was taking
more risk than was understood at the time.
"Some of the balance sheet risks taken by HBOS were
underestimated or the tools used in their calibration were
inadequate," Crosby said.