Ex-HBOS trio face City ban call HBOS's former chairman, Lord Stevenson Regulators should consider stripping three of HBOS's top directors of their right to run a financial company, a stinging report on the failed UK bank has urged. In a 96-page report, the Parliamentary Commission on Banking Standards accused HBOS's former chairman, Lord Stevenson, and former chief executives Sir James Crosby and Andy Hornby, of presiding over a "colossal failure." HBOS collapsed in 2008, costing taxpayers more than £20bn after it was folded into Lloyds, which then had to be bailed out by the government. In total, the business has sucked up £28bn of capital, the report says. The commission said the HBOS "catastrophe" should be seen as a case study of how not to run a bank and called on regulators to consider barring the three directors from any future role in the sector. None of the men has held prominent City jobs since leaving HBOS but the report said it was an important part of learning the lessons from HBOS that "those responsible for bank failures should be held more directly accountable for their actions and face sanction accordingly." But Andrew Tyrie, commission chairman, stopped short of calling for Lord Stevenson or Sir James to be stripped of their titles, saying the commission's report was designed to be "constructive, not vindictive." Fred Goodwin, the former chief executive of Royal Bank of Scotland, lost his knighthood last year after widespread outrage over the collapse of RBS and his generous pension arrangements. Only one man, former corporate banking boss Peter Cummings, has been punished over the HBOS affair. Mr Cummings was fined £500,000 and barred from working in the sector. Mr Tyrie said HBOS was a "candidate for having been the worst bank in Britain," largely because of its dreadful lending record. Since 2008, 10.5 per cent of the bank's loan book had ended up as bad debt, double the tally at the next worst, RBS. The bank's funding structures, which saw it rely on wholesale finance for half of its lending, combined with poor loan management to create a fatal mix. Overall directors had overseen "a flawed strategy, inappropriate culture and inadequate controls," the report says. Lord Stevenson in particular has shown himself incapable of facing the realities of what placed the bank in jeopardy. The report is the second postmortem on UK bank mismanagement in as many days. On Wednesday, the Salz report, commissioned by the Barclays board, delivered a critical view of an "entitlement culture" and an ethical "vacuum" in the run-up to the resignation of chief executive Bob Diamond, and chairman Marcus Agius.