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Authors: Ray Perman,Alistair Darling

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Covenant Close, off Edinburgh’s Royal Mile, once housed the Cross Keys Tavern, where in 1695 shareholders, quaintly called ‘Adventurers,’ first
subscribed for Bank of Scotland shares. (Ray Perman)

 

An early Bank of Scotland note. The directors feared that rivals would hoard notes, then present large quantities for payment in coin at short notice, provoking a
run on the bank. (Courtesy of Lloyds Banking Group plc Archives)

 

The Bank of Scotland board in 1995. Newly knighted Governor Sir Bruce Pattullo stands in the centre of the front row, with Jack Shaw (on his left in glasses),
later to become Governor. Directly behind Pattullo’s left shoulder, standing on the stairs, is Sir Alistair Grant, who succeeded him as Governor, but died of cancer shortly afterwards. In the
second row, behind Pattullo, is Sir Bob Reid, a deputy Governor who was selected to join the HBOS board, and next to him Lesley Knox, who was not. (Courtesy of Lloyds Banking Group plc
Archives)

 

The Bank of Scotland crest outside The Mound, its former headquarters. The Latin motto ‘Tanto Uberior’ approximately translates as ‘so much the
more plentiful.’ (Ray Perman)

 

Peter Burt (left) and Halifax’s James Crosby announce the merger which formed HBOS in 2001. Burt surprised everyone with his decision not to take the chief
executive post. (Press Association)

 

Bank of Scotland’s Gordon McQueen (left) would head HBOS treasury, with George Mitchell (right) leading corporate banking. Burt (centre) took the title
executive deputy chairman, but resigned after less than two years. (Press Association)

 

George Mitchell was a lifetime banker and considered a safe pair of hands, but he resigned from HBOS after losing out to Andy Hornby to become chief executive
after James Crosby’s early departure.

 

The HBOS board in 2006 in the old Bank headquarters, after its controversial refurbishment. Lord Stevenson, the chair, is fourth from the left. Peter Cummings and
Andy Hornby stand in front of the pot plant at the back. On the far right is Benny Higgins, who resigned after a year as head of retail banking, but was later proved right on his mortgage pricing
strategy. (Courtesy of Lloyds Banking Group plc Archives)

 

Under Peter Cummings, corporate banking became HBOS’s top profit earner, but he faced continual pressure to produce more. (© Paul Raeburn)

 

There was an outcry when HBOS refurbished The Mound, closing the branch which used to operate there and removing the offices of the Governor, chief executive and
general managers to be replaced by ‘hot desking.’ (Press Association)

 

Sir Philip Green, a talented businessman and retailer, was Cummings’ key contact. He did big deals, risking his own money alongside the Bank’s, but
always repaid his debts in full, ahead of time.

 

Vincent Tchenguiz with his brother Robert were among the high-rolling ‘FOPs’ – friends of Philip Green – who did big property deals
backed by Bank of Scotland corporate. (Press Association)

 

BOOK: Hubris: How HBOS Wrecked the Best Bank in Britain
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