A FORMER head of investment banking at HSBC said that he dismissed a gay banker for sexual harassment despite inconsistencies in the allegations against him.

Mark Bucknall, who has retired from HSBC, fired Peter Lewis for gross personal misconduct in 2004. That was after a colleague, “Mr A”, accused Mr Lewis of inappropriate behaviour in the company gym at Canary Wharf.

Mr Lewis, the former head of global equity trading at HSBC, claims he was dismissed because he is gay and is seeking £5 million compensation from the bank.

The employment tribunal must decide if the decision by HSBC was influenced by Mr Lewis’s sexual orientation. The bank has denied discriminating against Mr Lewis because he is gay.

Mr Bucknall told the tribunal that he had dismissed Mr Lewis because he did not think that Mr A seemed “a particularly imaginative person”.

“Mr A seemed calm and confident in his story,” Mr Bucknall said.

He added: “It took HSBC some 12 to 18 months to find an appropriate candidate for this position.

“The negative commercial impact of the claimant’s dismissal on the growth of this platform should not be underestimated.”

Chris Quinn, acting for Mr Lewis, said that HSBC had breached its own disciplinary procedures by allowing Mr Bucknall to preside over the disciplinary hearing even though he had already been briefed about the allegations.

Mr Quinn said that the bank should have appointed another member of staff instead.

The claim has been brought under new regulations extending the protection of sexual discrimination laws to homosexual workers.

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