Paul Moore (banking manager)
Encyclopedia
Paul Moore is a former manager at the bank HBOS
, who came to public attention in late 2008 as a whistleblower
after claiming that he had been fired for warning HBOS about its excessive risk-taking.
, Moore trained as a barrister. He was involved in UK financial regulation since it began in 1986. Between 1995 and 2002 he was a partner in KPMG
's Financial Sector Practice in London specialising in regulatory services where he advised a number of FTSE100 clients on regulatory matters.
Between 2002 and 2004, Moore was head of Group Regulatory Risk
at HBOS
. He had formal responsibility for the bank's policy and oversight of executive management's compliance with FSA
regulation.
. He claimed this was because he had told HBOS's board that the bank was taking excessive risks with its aggressive sales culture which was out of balance with its systems and controls. He passed his concerns about HBOS to the FSA
, who had it investigated by KPMG
, whose conclusion, that HBOS had appropriate risk controls in place, was accepted by the FSA. He sued HBOS
for unfair dismissal
; the bank settled his claim for over half a million pounds in mid-2005.
Although Moore had agreed to a non-disclosure agreement
as part of his settlement, he decided to speak out because he believed it to be in the public interest
.
On 10 February 2009, Moore submitted a memorandum of evidence to the UK's Treasury Select Committee, which was investigating risks taken by UK banks prior to the credit crunch
. Following the revelation that Moore had been fired by Sir James Crosby, formerly CEO at HBOS
, Crosby resigned from his subsequent post of Deputy Director at the FSA.
HBOS
HBOS plc is a banking and insurance company in the United Kingdom, a wholly owned subsidiary of the Lloyds Banking Group having been taken over in January 2009...
, who came to public attention in late 2008 as a whistleblower
Whistleblower
A whistleblower is a person who tells the public or someone in authority about alleged dishonest or illegal activities occurring in a government department, a public or private organization, or a company...
after claiming that he had been fired for warning HBOS about its excessive risk-taking.
Biography
Educated at the Catholic boarding school Ampleforth CollegeAmpleforth College
Ampleforth College in North Yorkshire, England, is the largest Roman Catholic co-educational boarding independent school in the United Kingdom. It opened in 1802, as a boys' school, and is run by the Benedictine monks and lay staff of Ampleforth Abbey...
, Moore trained as a barrister. He was involved in UK financial regulation since it began in 1986. Between 1995 and 2002 he was a partner in KPMG
KPMG
KPMG is one of the largest professional services networks in the world and one of the Big Four auditors, along with Deloitte, Ernst & Young and PwC. Its global headquarters is located in Amstelveen, Netherlands....
's Financial Sector Practice in London specialising in regulatory services where he advised a number of FTSE100 clients on regulatory matters.
Between 2002 and 2004, Moore was head of Group Regulatory Risk
Financial risk management
Financial risk management is the practice of creating economic value in a firm by using financial instruments to manage exposure to risk, particularly credit risk and market risk. Other types include Foreign exchange, Shape, Volatility, Sector, Liquidity, Inflation risks, etc...
at HBOS
HBOS
HBOS plc is a banking and insurance company in the United Kingdom, a wholly owned subsidiary of the Lloyds Banking Group having been taken over in January 2009...
. He had formal responsibility for the bank's policy and oversight of executive management's compliance with FSA
Financial Services Authority
The Financial Services Authority is a quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom. Its board is appointed by the Treasury and the organisation is structured as a company limited by guarantee and owned by the UK government. Its main...
regulation.
Dismissal controversy
In November 2004 Moore was dismissed by HBOSHBOS
HBOS plc is a banking and insurance company in the United Kingdom, a wholly owned subsidiary of the Lloyds Banking Group having been taken over in January 2009...
. He claimed this was because he had told HBOS's board that the bank was taking excessive risks with its aggressive sales culture which was out of balance with its systems and controls. He passed his concerns about HBOS to the FSA
Financial Services Authority
The Financial Services Authority is a quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom. Its board is appointed by the Treasury and the organisation is structured as a company limited by guarantee and owned by the UK government. Its main...
, who had it investigated by KPMG
KPMG
KPMG is one of the largest professional services networks in the world and one of the Big Four auditors, along with Deloitte, Ernst & Young and PwC. Its global headquarters is located in Amstelveen, Netherlands....
, whose conclusion, that HBOS had appropriate risk controls in place, was accepted by the FSA. He sued HBOS
HBOS
HBOS plc is a banking and insurance company in the United Kingdom, a wholly owned subsidiary of the Lloyds Banking Group having been taken over in January 2009...
for unfair dismissal
Unfair dismissal
Unfair dismissal is the term used in UK labour law to describe an employer's action when terminating an employee's employment contrary to the requirements of the Employment Rights Act 1996...
; the bank settled his claim for over half a million pounds in mid-2005.
Although Moore had agreed to a non-disclosure agreement
Non-disclosure agreement
A non-disclosure agreement , also known as a confidentiality agreement , confidential disclosure agreement , proprietary information agreement , or secrecy agreement, is a legal contract between at least two parties that outlines confidential material, knowledge, or information that the parties...
as part of his settlement, he decided to speak out because he believed it to be in the public interest
Public interest
The public interest refers to the "common well-being" or "general welfare." The public interest is central to policy debates, politics, democracy and the nature of government itself...
.
On 10 February 2009, Moore submitted a memorandum of evidence to the UK's Treasury Select Committee, which was investigating risks taken by UK banks prior to the credit crunch
Credit crunch
A credit crunch is a reduction in the general availability of loans or a sudden tightening of the conditions required to obtain a loan from the banks. A credit crunch generally involves a reduction in the availability of credit independent of a rise in official interest rates...
. Following the revelation that Moore had been fired by Sir James Crosby, formerly CEO at HBOS
HBOS
HBOS plc is a banking and insurance company in the United Kingdom, a wholly owned subsidiary of the Lloyds Banking Group having been taken over in January 2009...
, Crosby resigned from his subsequent post of Deputy Director at the FSA.