Letter from Cameron on Brown's crumbling conspiracy

This morning we learnt that Sir James Crosby had resigned from his position as Deputy Chairman of the City watchdog - the Financial Services Authority. This was because of an allegation made about his time as Chief Executive of HBOS. A former employee claims Sir James Crosby sacked him for saying that the bank was taking on too much risk.

Why is all this so important? For three reasons. First, because it raises questions about Gordon Brown's judgement. Sir James Crosby is one of his trusted economic advisers and the man he put in place to oversee the regulation of our banks. The turn of events now shows Gordon Brown's misjudgement in putting him in such an important role.

Second, it raises questions about Gordon Brown's character. In the House of Commons today, I asked the Prime Minister to apologise for getting this judgement call wrong. But, as ever, he refused. Be it for claiming to end boom or bust, failing to regulate our banks, or now this, the Prime Minister is simply unable to admit when he's got things wrong - so I don't believe he can be the man to put things right.

And third, it raises questions about the way this Government works. The immediate events leading up to Sir James Crosby's resignation are still not clear. Was it his decision? Or was he pushed in order to make life easier for the Government? Whatever happened, I suspect this will not be the last of the resignations we see to save this Government's political skin.