[6] Crosby joined financial services company Scottish Amicable Life Assurance (acquired in 1997 by Prudential plc) in 1977.
After qualifying as a Fellow of the Faculty of Actuaries in 1980, he was a founding director of J Rothschild Assurance in 1991, which went on to become wealth manager St. James's Place plc.
[9] In early 2006 Crosby retired after seven years as chief executive[10] leaving HBOS as the fourth largest bank in the United Kingdom in terms of market capitalisation.
Crosby was appointed in January 2004 by HM Treasury as a non-Executive Director of the Financial Services Authority whilst still CEO of HBOS.
During a session of the Treasury Select Committee of the House of Commons on 10 February 2009, it was alleged that Sir James had ignored warnings by its former head of Group Regulatory Risk, Paul Moore, relating to risky business practices.
"[14] Moore related the key issues in his statement: On 11 February 2009 Crosby resigned from his post at the Financial Services Authority, which BBC News Business Editor Robert Peston says he understood was to protect the FSA from controversy.
[24] On 3 December 2012 Crosby was required to appear before the British Parliamentary Commission on Banking Standards over his role as Chief Executive during the Collapse of HBOS.
'[25]'Whitehall's honours forfeiture committee met in recent days and accepted Mr Crosby's request for him to lose his knighthood.