Sir James Crosby's released a statement which reads as follows: "In the light of recent media coverage I have decided to issue a short statement.
Just over three years ago I resigned my position as CEO of HBOS. Towards the end of my time as CEO of HBOS, as part of a wider restructuring of group functions the Risk Function was elevated to report direct to the CEO.
As part of this I asked one of our risk managers, Paul Moore, to leave HBOS.
At the time he made a series of allegations.
These were independently and extensively investigated on behalf of the Board, the results of which they shared with the FSA. That investigation concluded that Mr Moore's allegations had no merit.
Last autumn and again yesterday at the Treasury Select Committee he repeated substantially the same allegations. HBOS has reiterated its view that his allegations have no merit.
Questions have also been raised about my independence from government.
During the last two years I have devoted considerable time to producing two reports for the Government; the first on identity assurance and ID cards (published last March) and the second on mortgage finance (published last November).
I am confident that anyone who either worked with me on the reports or indeed anyone who has read them will conclude that they are the work of someone who is genuinely independent of government. In addition I want to emphasize that I have absolutely no political connections or affiliations.
I am full of admiration for my colleagues at the FSA and the work they are doing under extreme pressure.
As a non-executive director I have an absolute responsibility to ensure that I do not make their task any more difficult.
Therefore, whilst I am totally confident that there is no substance to any of the allegations, I nonetheless feel that the right course of action for the FSA is for me to resign from the FSA Board which I do with immediate effect."
On hearing the news Liberal Democrat Shadow Chancellor, Vince Cable commented: "It is clear from Paul Moore's evidence that James Crosby was part of the problem, not part of the solution. The FSA needs people with experience, but not the wrong experience.
"It is extraordinary that Gordon Brown ever made such an utterly inappropriate appointment.
"HBOS was one of the worst examples of a former building society, de-mutualised under the last Tory government, engaging in highly reckless lending.
"The fact that Sir James has fallen on his sword is beside the point. He should never have been appointed to such an important role in the first place."
