PRESSURE is mounting on the disgraced former bosses of Halifax Bank of Scotland amid growing anger over their mammoth pension pots and nearly £1 million of "bonuses for going bust".
Seven directors of HBOS landed £914,000 in "change of control" payments triggered by the bank's rescue takeover by Lloyds Banking Group following its £20.5 billion taxpayer bailout in 2008.
It also emerged that Sir James Crosby and Andy Hornby – two of the three former HBOS chiefs damned last week by Westminster's commission on banking standards for "catastrophic failures of management" – were on pension schemes that accrued benefits at twice the rate of average workers.
Mr Hornby, eligible to start drawing down a £240,000-a-year HBOS pension when he turns 50 in four years' time, is now in the spotlight following Sir James's decision earlier this week to hand back 30% of his £580,000-a-year pension as well as give up his knighthood.
Under the change of control payments handed out at the time of the Lloyds takeover, Mr Hornby received £251,000 cash and 7599 shares – on top of salary, pensions awards and redundancy payments.
MPs are now demanding an inquiry into the handouts.
Labour's John Mann, who sits on the influential Commons Treasury Committee, said the due diligence done at the time of the deal needed to be investigated, while the former bosses should also pay the money back.
"This is taxpayers' money being used to pay bonuses to bankers that brought down their own bank and cost thousands of ordinary workers their jobs. These are bonuses for going bust," said the backbencher.
Earlier this week, pressure was piled on former HBOS executives by No 10 when Prime Minister David Cameron urged them to look to their consciences to see whether they should make sacrifices like Sir James.
Others to receive bonus payments include Peter Cummings – the former head of corporate lending and the only ex-HBOS director penalised by the Financial Services Authority after being fined £500,000 and banned for life from working in the City.
Scot Mr Cummings, who claimed he had been made a scapegoat, received £129,000 and 2051 shares.
Yesterday, Lloyds stressed the decisions to award change-of-control payments and pensions were made by HBOS before its takeover.
"At the time these arrangements were settled, Lloyds did not own HBOS," said a spokesman.
"All decisions with respect to the redundancy or severance terms applicable to departing HBOS senior executives, including pensions, were made by the HBOS remuneration committee or board of HBOS prior to the acquisition by Lloyds," he added.
Last week, the banking commission's report called for the three former directors to face being barred for life from working in the City for their "toxic" misjudgments.
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