Stevenson, [the former chairman of HBOS], said he "felt awful" that the board had failed to foresee the "protracted" closure of the wholesale markets on which the bank relied for funding....
Stevenson, who grew hoarse during the testy exchanges, irritated members of the commission, who include former chancellor Lord Lawson and the new archbishop of Canterbury, Justin Welby, by his insistence that the main problem was the failure to predict wholesale markets would dry up for a year.
He told Welby: "We failed to plan for catastrophe … we were not aware until very late in 2008 that we were suffering from a heart attack."
HBOS's loan-to-deposit ratio – a measure of reliance on markets rather than savers to fund lending – had grown from 140% to 196%.
"What brought the bank down was the closure of the wholesale markets. The day after Lehman that was it," said Stevenson, who oversaw the takeover by Lloyds three days after the US bank collapsed.