HBOS whistleblower warns of further cuts

Dickon Hooper
Politics Show West

Mr Moore said he warned the board of HBOS about its sales culture

The bank executive who blew the whistle on what he said was excessive risk-taking has warned that more job losses may be on the way in the financial sector.

Paul Moore used to work for HBOS as head of group risk, before - he says - they sacked him in 2004 for warning the bank's board about its potentially dangerous sales culture.

The bank denied these allegations, but would later be taken over by Lloyds with government backing.

Not a good deal, according to Bristol-born Mr Moore.

"Within a few weeks of buying it there was a £10bn loss - how didn't they know about that?," he said.

"In order to make the deal work, they've got to shed closer to 20,000 than 10,000 jobs."

Lloyds is currently reviewing all its operations. It says it will not comment on speculation, but told the BBC's Politics Show West that it was committed to a "multi-branded" strategy.

Wider implications

It would not say how long any review would take.

A spokeswoman added: "We believe the HBOS deal will bring significant returns to our shareholders in the medium-term. It was also in the interests of financial stability in the UK.

"Where changes are necessary, we are committed to working through them with colleagues. The group's preference is to use natural turnover and to redeploy people wherever possible."

But in the West Country, cuts are already being made.

About 115 jobs have gone at the offices of Lloyds-owned pension and investment provider Clerical Medical, with the unions now involved.

Ged Nichols, of the union Accord, said: "The bank's said it wants to save £1.5bn of costs by 2011. A lot can come from non-personnel areas.

"But clearly there are operations that will be brought together and consolidated. It was an inevitable consequence of the rescue of HBOS."

After all, the logic of a large bank like Lloyds is stacked against a small office in Clevedon.

In Gloucestershire, the fear is that the Lloyds-owned C&G will be next - a brand that locals think is worth fighting for.

"When the bank's owners are UK PLC, you have to think about the wider implications of any decision you make as a business," said David Owen of the business organisation, Gloucestershire First.

"Including about the 1,200 people who work locally, including their families and the businesses that support them."

Paul Moore could not agree more.

Follow Paul Moore's journey around the West Country's financial districts on The Politics Show, BBC One in the West, this Sunday at 11am, or on iPlayer.