Former HBOS chief Sir James Crosby has announced that he will stand down as trustee of Cancer Research UK, a position he has held since 2008.

It follows Sir James’ request for his knighthood to be revoked after a highly critical report from the Parliamentary Commission on Banking Standards which said that he sowed “the seeds of destruction” at HBOS, one of Britain’s biggest bank.

In 2008, HBOS had to be rescued by fellow bank Lloyds and was eventually bailed out with £20bn of taxpayers’ money. Sir James, who left his job as the bank's chief executive in 2006, was blamed for creating a strategy that led to HBOS's failure. 

Sir James said he was “deeply sorry” for his role in HBOS’s failure and has this week asked for his knighthood to be removed. He has also offered to hand bank 30 per cent of his £580,000-a-year pension.

Sir James also stepped down as a trustee of Cancer Research UK. He said he had made the decision “with great personal sadness,” but that he wanted to “put their interests firmly before mine”.

Michael Pragnell, chairman of Cancer Research UK, said: “I fully respect James’ decision to step down as a trustee and, on behalf of the charity, would like to thank him for his active support over the past five years and wish him well.”

Former HBOS chair to remain at mental health charity

Elsewhere, Lord Stevenson, former chair of HBOS, is to continue his chairmanship at the newly-formed mental health charity MQ.

Lord Stevenson was also criticised by the Parliamentary Commission on Banking Standards report for his role in the near-demise of HBOS. 

MQ has been set up with £20m of funding from the Wellcome Trust.