HBOS whistleblower Paul Moore breaks silence to condemn Crosby

Paul Moore, the whistleblower whose claims about risk taking at HBOS led to the resignation of its former boss Sir James Crosby from the UK's financial watchdog, has poured scorn on his defence.

Mr Moore's claim to the Treasury Select Committee that he was sacked by Sir James for warning that the bank's lending policy had become dangerously overheated has sparked a political row and questions over Gordon Brown's judgment.

Sir James resigned as deputy chairman of the Financial Services Authority following the allegations, saying that he did not wish to become a distraction but insisting that there was "no merit" to Mr Moore's claims.

But Mr Moore, 50, responded: "Why would you resign if you totally deny all allegations?"

He told the Daily Telegraph that he "totally stood by" his claims about his sacking and said he had extensive correspondence to back them up which he was prepared to submit to an inquiry for scrutiny.

And he described an unpublished report by the respected accountants KPMG which exonerated Sir James of wrongdoing as "inaccurate, inadequate and without weight".

He also accused the leaders of Britain's main banks, whom he holds responsible for the current financial crisis, of being out of touch and arrogant.

"I feel genuinely sorry that people who are so senior are so unable to see things as ordinary people see them."

Sir James, 52, is a close adviser to Gordon Brown and had recently carried out a review of the mortgage market for the Government and his departure will be a blow to the Prime Minister.