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Brown faces grilling over adviser Brown defends Crosby appointment
(about 1 hour later)
Gordon Brown is set for a grilling from senior MPs as questions are raised about his choice of ex-HBOS chief Sir James Crosby as a key adviser. Gordon Brown has defended his choice of ex-HBOS chief Sir James Crosby to be deputy head of City regulator FSA in 2003, as he is grilled by senior MPs.
The prime minister's twice-yearly session facing the chairmen of all the Commons committees starts at 1000 GMT. The prime minister's twice-yearly session facing the chairmen of all the Commons committees started at 1000 GMT.
It comes the day after Sir James, who was asked by Mr Brown to produce a report on the mortgage market last year, resigned from regulator the FSA. It comes the day after Sir James resigned as deputy chairman of the FSA.
And it comes after the FSA said it had had concerns about the running of HBOS. Mr Brown said he appointed Sir James on an independent panel's recommendation and said he had not known at the time the FSA had any concerns about HBOS.
Sir James Crosby resigned as deputy chairman of the FSA - the Financial Services Authority - after claims from HBOS's former head of risk that he had been axed by him after warning that the bank was growing too fast.Sir James Crosby resigned as deputy chairman of the FSA - the Financial Services Authority - after claims from HBOS's former head of risk that he had been axed by him after warning that the bank was growing too fast.
FROM THE TODAY PROGRAMME More from Today programme You can watch the entire session live on this page from 1000 GMTFROM THE TODAY PROGRAMME More from Today programme You can watch the entire session live on this page from 1000 GMT
HBOS and Sir James have both denied those claims, but it emerged later on Tuesday that the FSA had warned the merged Halifax/Bank of Scotland group about its business model. HBOS and Sir James have both denied those claims, but it emerged on that the FSA had warned the merged Halifax/Bank of Scotland group about its business model.
In a statement the regulator said it had raised concerns about the way HBOS was being run as far back as 2002 before and after "whistleblower" Paul Moore left the company.In a statement the regulator said it had raised concerns about the way HBOS was being run as far back as 2002 before and after "whistleblower" Paul Moore left the company.
Questions have now been raised by opposition MPs about whether Mr Brown, who was then chancellor, was aware of the warnings about the business model of the bank, which had to be rescued using taxpayers' money last year. Questions had been raised by opposition MPs about whether Mr Brown, who was then chancellor, was aware of the warnings about the business model of the bank, which had to be rescued using taxpayers' money last year.
Mr Brown is likely to also face questions about bonuses for bank bosses and his wider handling of the economy - with his pledge of "British jobs for British workers" a possible topic given recent protests.Mr Brown is likely to also face questions about bonuses for bank bosses and his wider handling of the economy - with his pledge of "British jobs for British workers" a possible topic given recent protests.
Although the session in Westminster is expected the focus mainly on the economy, the two-and-a-half-hour hearing is also expected to focus on foreign affairs.Although the session in Westminster is expected the focus mainly on the economy, the two-and-a-half-hour hearing is also expected to focus on foreign affairs.
'Deep recession''Deep recession'
The themes are selected in advance, although Mr Brown is not given prior notification of the questions.The themes are selected in advance, although Mr Brown is not given prior notification of the questions.
MPs will ask the prime minister about its consequences for the private and public sectors, as well as its impact internationally.MPs will ask the prime minister about its consequences for the private and public sectors, as well as its impact internationally.
Bank of England governor Mervyn King said on Wednesday that the UK was in "deep recession".Bank of England governor Mervyn King said on Wednesday that the UK was in "deep recession".
It was also revealed that UK unemployment had risen to 1.97 million between October and December, the highest level since 1997.It was also revealed that UK unemployment had risen to 1.97 million between October and December, the highest level since 1997.
Thursday's liaison committee session will be the third time Mr Brown - who came to power in June 2007 - has faced the MPs' questions.Thursday's liaison committee session will be the third time Mr Brown - who came to power in June 2007 - has faced the MPs' questions.
Chancellor Alistair Darling is to face Treasury questions in the House of Commons chamber.Chancellor Alistair Darling is to face Treasury questions in the House of Commons chamber.
Meanwhile, Liberal Democrat leader Nick Clegg will deliver a speech calling for a return to "traditional, narrow high street banks".Meanwhile, Liberal Democrat leader Nick Clegg will deliver a speech calling for a return to "traditional, narrow high street banks".
He will add: "Institutions that consumers and small businesses depend on for savings and loans should not be put at risk by the casino culture of investment banking."He will add: "Institutions that consumers and small businesses depend on for savings and loans should not be put at risk by the casino culture of investment banking."