Yesterday, U.K.’s Financial Services Authority (FSA) confirmed the resignation of its deputy chairman, James Crosby, and released details of the FSA’s HBOS investigation, which triggered the controversy surrounding the resignation. From 2001 to 2006 Crosby was the chief executive of HBOS, which was acquired by Lloyds TSB last month. The controversy involves allegations that Crosby terminated Paul Moore, former head of Group Regulatory Risk at HBOS, for expressing concerns to the FSA regarding the regulatory risk function at HBOS. The FSA explained, “HBOS decided to upgrade the risk function by appointing a new group risk director as the senior executive responsible for regulatory risk in the group” and “following that appointment, the then head of group regulatory risk, Paul Moore, was informed on 8 November that he would leave as part of this restructuring; he subsequently approached FSA to express concerns about HBOS and in particular about the suitability of the new appointee as the group risk director.” The FSA confirmed the “specific allegations made by Paul Moore in December 2004 regarding the regulatory risk function at HBOS were fully investigated by KPMG and the FSA, which concluded that the changes made by HBOS were appropriate” and “there was no evidence in the report that Mr. Moore was dismissed due to being excessively robust in the discharge of his functions.”