A Scottish banker has been fined a record £500,000 and banned from any senior UK banking position for his part in the collapse of Halifax Bank of Scotland.
Peter Cummings, former head of corporate banking at HBOS, was behind many of the bank's high-profile deals before it was bailed out by the taxpayer.
The Financial Services Authority said Cummings had failed to exercise enough care and attention in his corporate division while it pursued an aggressive expansion strategy.
But Mr Cummings, who is the only man to be sanctioned by the FSA over the HBOS collapse, branded the three-year FSA investigation as "an Orwellian process by an organisation that acts as lawmaker, judge, jury, appeal court and executioner".
Tracey McDermott, the FSA's director of enforcement and financial crime, said: "Despite being aware of the weaknesses in his division and growing problems in the economy, Cummings presided over a culture of aggressive growth without the controls in place to manage the risks associated with that strategy.
"Instead of reacting to the worsening environment, he raised his targets as other banks pulled out of the same markets."
The sanction against Mr Cummings paves the way for a report by the FSA into the cause of the HBOS failure in 2008 when it required the taxpayer-funded bailout and was bought by fellow bank Lloyds.
Mr Cummings was accused by the FSA of presiding over a "culture of optimism" which affected the corporate division's judgment about debt.
The FSA said: "Under Cummings' direction, the division pursued an aggressive growth strategy, despite these known weaknesses in the control framework.
"Rather than taking reasonable steps to mitigate potential risks, he directed his division to increase its market share as other lenders were pulling out of deals."
Mr Cummings, who rejects the FSA's decision "in its entirety", said that he had decided not to appeal against the findings with a "deep reluctance" because of the costs and the strain it would put on his family.
He said: "Many people must bear collective responsibility for what happened, including governments and regulators as well as the boards of the banks themselves.
"But the fact that I am the only individual from HBOS to face investigation defies comprehension."
Mr Cummings claims that he took "strenuous efforts to improve risk controls" within the division and said there should be an inquiry into the bank's failure independent of the FSA.
The FSA has previously said corporate division took too many risks from the start of 2006, leaving it vulnerable to the financial downturn.
But it said that although this behaviour contributed to the taxpayer bailout, the bank itself would not be punished to protect taxpayers' money.
Mr Cummings reportedly left HBOS with a £660,000 pay-off and a £6m pension.
When Lloyds took over HBOS at the height of the banking crisis, it was forced to write off more than £20bn.
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