Never mind the apologies – what went wrong and why?

Top bankers may have delivered easy apologies to the Treasury Select Committee, but, says James Ferguson their evidence still leaves us no wiser as to how we got here in the first place.

It's not every day you get to watch the heads of two once-powerful UK banks defend themselves to a Treasury Select Committee. I was expecting the hair-shirt act and the apologies, and we got them, but I also expected a clearer description of what went wrong. After all, the four in disgrace Lord Stevenson and Andy Hornby, chairman and chief executive respectively of HBOS, and Sir Tom McKillop and Sir Fred 'The Shred' Goodwin, who occupied the same roles at RBS can have had little else to think about for the last few months.

Yet once the 'sorrys' were out of the way, MPs had to keep asking whether the bankers were really remorseful, so quick were they to blame the wholesale funding markets, the stress-tested models, the fall of Lehman Brothers, the ratings agencies in fact anything and everything but their own incompetence. On that the bankers were united. Their industry commands the very best talent and they stood at the top of that pyramid of excellence.

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James Ferguson qualified with an MA (Hons) in economics from Edinburgh University in 1985. For the last 21 years he has had a high-powered career in institutional stock broking, specialising in equities, working for Nomura, Robert Fleming, SBC Warburg, Dresdner Kleinwort Wasserstein and Mitsubishi Securities.