April 5 - Former HBOS CEO, James Crosby resigns from private equity group Bridgepoint after a damning parliamentary report into the bank’s collapse. Lucy Marcus discusses.
Boy -- CEO James Crosby has quit his role of private equity group Bridgepoint Crosby. Is of course one of three exact severely criticized. In a damning parliamentary report into the HBOS collapsed Reuters -- -- -- Marcus. Joins me now I am. All right the messages go through he's gone from Bridgepoint. It's just the start to try something more to -- And you and I talked about the book all heard this idea that out there about director contagion. Where if you are in trouble in on another board or have done something in -- brings disrepute to yourself. Are you passing it on to other boards that you sit on. -- three people lit the that the parliamentary commission on banking standards holds as responsible. Have up until this morning. Not had any comeuppance. And so this may be the first. Things to come I imagine it this this resignation will put the pressure on the -- suit. To act or perhaps make some elements. I mean or -- it's. Currently the boss of the betting chain coral. Crosby still sits on the board. Compass which is one of the largest catering companies he still not infected mice it's. Bear in Stephenson. Still sits in the House of Lords and sits on a number of boards. So you know British point he was he was only. -- across there was only -- and -- he wasn't actually a board member. The question is what happens to people who have. Demonstrated. There's been a demonstration on that it's possible why why weren't accompanied get off to a report like this and add to that damning adjectives used in this report reckless delusional eccentric. Why would a company got a nit people like us. They still look really I mean. Crosby was deputy chairman of the financial services authority. It's hard to say because you know they're all very well established say they are all really well recognized. We saw -- in the financial crisis that. Not a lot happened to the people who are responsible for those of lot of people who work in public banks now still sit on other boards of banks in the US and so on. There is often the case made that they have had experience. But you and I both know it's a nonsense are again -- big question are there are a lot of incompetent reckless. Did you did board members outlet. Well. I think there are all of that is changing you know -- and Stevenson said that he saw the job as chairman as a part time job. It's not about the time you put in it's about doing the job all of these jobs is not executive director I have a job description I've ever responsibility. I'd just ask hard questions -- the whole organization who promises to be independent. And and if things don't go right I should. And will in the future I think for all -- directors be held personally liable. So the question is going into these not executive positions not how little time can I spend so that it -- at my deviant and looks good but rather. You I have the time necessary to commit to this job noted that properly and and as I've written about the power and we talked about before if you can't do that job well get off the board. All right busy get a stop that many thanks Lucy -- us. Pass from in the boardroom with -- Marcus that's it for me I'm -- trouble this is righteous.