Former HBOS Chief Executive James Crosby has been formally stripped of his knighthood after requesting to have the honour removed, the Cabinet Office said.
Sir James Crosby has stepped down as an independent director at catering giant Compass. It follows his decision to stand down from his role at Cancer Research UK and to give up his Knighthood following the HBOS scandal.
I have spoken to people close to the former HBOS chief Sir James Crosby who say that these two decisions, to forego his knighthood and almost a third of his pension, have been very difficult for him to take.
They say he was taken aback by his portrayal in the press, and he hopes that this sacrifice will be seen as appropriate and will stop what he saw as a witch hunt against him.
It is too early to say whether it will work, but I have spoken to some people who suffered as a result of what went on at HBOS and they have welcomed the steps.
Former HBOS chief Sir James Crosby has also announced today that he will stand down as a trustee of charity 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".
He also said in the statement that he was "deeply sorry for what happened at HBOS" and that he has "always tried to act with integrity and to the best of my abilities".
Former HBOS chief Sir James Crosby has announced today that he will forego 30% of his gross pension entitlement in addition to giving up his Knighthood.
The pension has been built up over 30 years, including 12 years spent at Halifax and HBOS, and currently amounts to around £580,000 per annum.
His decision will still leave him with an annual payout worth £406,000.
He said in a statement released today that he "will be discussing how this reduction is implemented, and whether the amount waived should go to support good causes, or benefit shareholders".
A former boss of HBOS, who was slated in a recent parliamentary report into failures at the bank, has announced that he will give up his Knighthood.
Sir James Crosby was chief executive of HBOS from 2001 to 2006. In a statement released today, he said:
"Shortly after I left HBOS, I received the enormous honour of a Knighthood in recognition of my own - and many other people's - contribution to the creation of a company which was then widely regarded as a great success.
"In view of what has happened subsequently to HBOS, I believe that it is right that I should now ask the appropriate authorities to take the necessary steps for its removal."
He added that he would also forego 30% of his gross pension entitlement.
Vince Cable has asked his officials to see if there is enough evidence against Lord Stevenson, the former HBOS chairman, Sir James Crosby, the former chief executive, and Andy Hornby, his successor, to start a formal probe under the Company Directors Disqualification Act.
Mr Cable told The Sunday Times (£) it was the first step in a process which could lead to the three - who have so far not faced formal sanction - being barred from acting as company directors.
He told the newspaper:
It's quite a legalistic process. I can ask (officials) to look at whether the companies investigations branch take action. We do have this power which I have begun to initiate.
Business Secretary Vince Cable has requested evidence which could lead to a City ban for the three former HBOS bosses whose "toxic misjudgments" were blamed for the bank's 2008 collapse, BBC News has reported.
It claims Mr Cable was "outraged" at Friday's damning Parliamentary report and has begun "formal proceedings" which could see Andy Hornby, Lord Stevenson and Sir James Crosby disqualified as company directors.
The collapse of HBOS cost the taxpayer £20 billion.
Three former bosses of HBOS were blamed today for the collapse of one of Britain's biggest banks at a cost to the taxpayer of a staggering £20 billion.
A damning Parliamentary report said the downfall of HBOS was caused by the "toxic misjudgments" of Sir James Crosby, Lord Stevenson and Andy Hornby.
ITV News' Business Editor Richard Edgar reports: