Is disgraced HBOS banker secretly in charge at Ladbrokes?

Andy Hornby is real chief at bookmaker, insiders claim by Hugo Duncan

The disgraced banker who took hBOS to the brink of collapse is now running Britain’s biggest bookmaker – despite not being on the board or officially being handed the top job.

Andy hornby, who was heavily criticised for his role in the downfall of the bank following years of reckless lending, has risen to the top of Ladbrokes Coral a decade after the financial crisis devastated the British economy.

But he is not the chief executive and does not have a seat on the board of directors – instead holding the position of chief operating officer. hornby’s exclusion from the board, which keeps his job and his pay out of the public glare, follows the demise of hBOS on his watch nearly a decade ago – an episode still being investigated by regulators.

It is a challenging time for bookies as they lock horns with the Government over fixed odds betting terminals – machines dubbed the ‘crack cocaine’ of gambling because of their addictive nature.

The delicate job at Ladbrokes Coral of dealing with ministers and officials falls to well-respected chief executive Jim Mullen. But industry insiders said hornby is effectively in charge, overseeing the retail and digital arms which make up 85pc of revenues. One source said: ‘Andy hornby is running the show.’

Another said: ‘hornby is not on the board but he is widely considered to be running the business.’

City watchdogs the Financial Conduct Authority and the Prudential Regulation Authority are investigating ‘certain former hBOS senior managers’ over their role in the demise of the bank. The regulators have refused to say which ones are under the spotlight. But hornby’s elevated position at Ladbrokes Coral – which has a market capitalisation of £2.3bn – has raised eyebrows. Nikki Turner, who founded campaign group SMe Alliance to fight for the victims of a fraud scandal at hBOS in Reading, said: ‘he may be more suited to a betting career. But someone with his track record shouldn’t be in a senior position anywhere.’

hornby, 50, was just 39 when he succeeded Sir James Crosby as chief executive of hBOS in 2006.

he was lambasted by MPs as ‘unable or unwilling to change course’ at hBOS after Crosby set the bank on the road to ‘disaster’. he took over as chief operating officer of Ladbrokes Coral after the £2.3bn merger of the two betting titans last year.

A Ladbrokes Coral spokesman said: ‘Andy hornby is a talented and valued member of our senior leadership team.

‘he is our chief operating officer and fulfils the same role as countless other chief operating officers across the FTSe.

‘People who comment on his role and compare it to the chief executive role clearly do not understand how Ladbrokes Coral and a host of other large operational and internationally diverse companies work.’