Knights and Knaves

James Crosby - formerly Sir James Crosby - has been stripped of the knighthood that he received on the recommendation of Gordon Brown and the last Labour Government - which was very close to lots of famous bankers, of course.

Now I can't shed to many tears over this news - as I don't agree with the honours system and, personally speaking, I would abolish the whole business of handing out CBEs, OBEs, CBEs and whatnot - because generally speaking they go to all the wrong people.

But I do have a little respect for James Crosby since he at least recognised his own fall from grace - and asked to be stripped of his own knighthood unlike, say, Fred Goodwin - who also became 'Sir Fred' on the recommendation of one Gordon Brown.

Seems to me there is a bit of a worrying trend here - with the once high and mighty bankers being held to account, in some ways at least, while the politicians who encouraged their risky behaviour with the economy - tend to walk away from the scene of the 'crime' relatively unscathed. 

Nonetheless James Crosby - the former head of HBOS bank (now part of Lloyds) - is still set up for life despite no longer being a fully fledged knight of the realm - because his retirement package looks like a lottery win to most ordinary people.

James gave up - voluntarily - 30% of his £580,000 a year pension, so he will have to survive on only £400,000 in 2013 and in subsequent years - which will probably keep him in the style he became accustomed to as one of the UK's top bankers.

Meanwhile, the shares of HBOS have completely tanked and are worth less then 10% of their original value - from the heady days when James was at the helm. 

So, the small shareholders are the people I fell sorry for - in reality they are the people who have been left holding the baby - while others have emerged from the debacle without any real damage done.