FSA CHIEF SIR JAMES CROSBY RESIGNS CREATES MASSIVE PROBLEM FOR PM BROWN.

SIR JAMES CROSBY RESIGNATION HUMILIATION FOR PM.

FSA CHIEF SIR JAMES CROSBY RESIGNS CREATES MASSIVE PROBLEM FOR PM BROWN.

EVIDENCE PILES UP AGAINST “CULPABILITY BROWN” AS FSA CHIEF RESIGNS.

CROSBY RESIGNATION HUMILIATION FOR PRIME MINISTER BROWN.

Following the resignation of FSA deputy chief, Sir James Crosby, SNP Treasury spokesperson Stewart Hosie MP branded the prime minister “Culpability Brown” and pointed to the trail of responsibility for the banking crisis leading to Downing Street and Gordon Brown's failed regulatory regime.

The resignation of Sir James – one of the prime ministers key advisors - follows revelations that when he was chief executive of bank HBOS he sacked a whistleblower who warned that banks were heading for disaster. Sir James was knighted on the recommendation of the UK government, and later appointment as deputy chairman of the FSA.

The warnings by the HBOS whistle blower reflect similar warnings given to the FSA and the Prime Minister about Icelandic banks months before the UK Government took any action - and which is now seen as being so heavy handed it precipitated an even more rapid collapse.

Mr Hosie said:

“As one of Gordon Brown’s key advisors, the resignation of Sir James Crosby leads the trail of responsibility for the banking crisis direct to Downing Street. If it's not his favourite advisors it's revelations about how they failed to take adequate action in time concerning Iceland's banks when he was given warnings months in advance.

"The evidence is piling up against 'Culpability Brown', and the prime minister cannot take much more humiliation like this.

"Until now the main charge against Gordon Brown was his role as Chancellor in the decade when many of the catastrophic cracks in the financial sector developed.

"But allegations that one of Gordon Brown’s key advisors and the deputy chief of the FSA was warned that the banks were heading for disaster and did nothing are as serious as they can be.”