Sir Hector Sants, the former chief executive of the Financial Services Authority, was criticised by an official investigator yesterday for failing to take action against Andy Hornby over the collapse of HBOS.
Andrew Green, QC, appointed by parliament to review the FSA’s role in the fiasco, blamed Sir Hector personally for allowing Mr Hornby to escape a proper investigation.
HBOS collapsed in 2008, leaving taxpayers to foot a £20.5 billion bill for its rescue.
Appearing before the Treasury select committee, Mr Green said that there was a “significant mismatch” between the “tone from the top” set by Sir Hector and the actual approach of the FSA’s enforcement division in 2008 to 2010.
Although Sir Hector proclaimed that enforcement should be “ambitious” in pursuing wrongdoers, he