The Times Leading Article

1. Show remorse and apologise.

Score: 7/10

It all started very well, with each of the four explicitly saying sorry, uttering full and unreserved apologies. As proceedings continued however, it was clear that while taking responsibility they weren't taking all that much of the blame. Andy Hornby, former chief executive of HBOS, later said he didn't regard himself as very personally culpable. Sir Fred Goodwin, fomer chief executive of Royal Bank of Scotland, ended the session saying, "I believe I've run the bank in a responsible way." He added: "It's just too simple if you blame it all on me."

2. Explain how and why they failed.

Score: 3/10.

Not so much enlightenment here. The HBOS duo repeatedly explained how with hindsight they were too reliant on the wholesale funding markets, which froze up in the credit crunch. But they were not so helpful on why they chose to be so reliant and why the alarm bells weren't rung at the time. The RBS pair both admitted the ABN Amro acquisition had been a mistake, but were less able to explain why it had gone ahead. The message from both was that with hindsight, mistakes were made but there was little explanation as to why. Strangely, Sir Tom McKillop, whose bank created the toxic assets that helped to sink it, admitted that he did not fully understand them; Lord Stevenson, whose bank did not, said he did understand them.

3. Suggest short-term solutions to restore liquidity and solvency to the banking system.

Score: 0/10.

Neither the MPs nor the bankers grappled with this at all. Although bank share prices have stabilized and rallied in recent weeks, there are still concerns they may yet require further capital injections. This was not addressed.

4. Suggest long-run reforms.

Score: 2/10.

John McFall, chairman of the Treasury Select Committee, asked the bankers what should happen at the next financial crisis. Should taxpayers be expected to pick up the tab again; should we rely on better regulation; or should investment banks be separated from high-street banks? Lord Stevenson found none of the three convincing by itself. Sir Fred Goodwin opted for the second option but admitted it would not be sufficient. The overoptimistic culture in banks, the push for sales at the expense of prudence, the role of the credit rating agencies and the Financial Services Authority were all discussed, but no conclusions were reached. None of the bankers was convinced by MPs' suggestions that board directors should have formal banking qualifications.

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