VIDEO: Brown refuses to apologise for our imploding economy (again...)

Pressed by Conservative leader David Cameron to "admit that he had done something wrong", the Prime Minister simply responded: "If we had not stepped in to save the banks I would have had to have apologised for not taking the necessary action."

It came just hours after Government adviser Sir James Crosby had resigned, gave Mr Cameron even more ammunition to fire at the beleaguered PM.

Sir James, who was vice-chairman of the Financial Services Authority (FSA),  is alleged to have sacked a "whistleblower" who warned of the risks facing HBOS four years before the crisis took hold.

He was then employed by the Government as a financial adviser to the current economic crisis, which Mr Cameron labelled "a serious error of judgement".

He said: "Let's be clear about what has happened. Sir James, the man who ran HBOS and who the prime minister singled out to regulate our banks and advise the government, has resigned over allegations that he sacked the whistleblower who knew his banks was taking unacceptable risks.

**** GET A GREAT CHEAP MORTGAGE DEAL DESPITE THE CREDIT CRUNCH ****

"Taxpayers have poured billions into this bank and not only was Sir James appointed as one of the top regulators in the country, you have been relying on him for economic advice.

"Sir James Crosby has had the decency to resign. Why can't the prime minister have the decency to admit he got something wrong?"

The Prime Minister said that Sir James' decision to resign was the "right" one, and he told the House: "It is right that we investigate serious allegations that are made about the banking system. These are serious but contested allegations.

"In relation to Sir James Crosby, these are allegations that he will wish to defend so it is right that he has stepped down as vice chairman of the Financial Services Authority."

Sir James advised the Government on efforts to revive the mortgage market and the development of the proposed ID cards scheme.

Treasury Committee chairman John McFall played down suggestions that it could now summon Sir James to give evidence.

“The select committee does not undertake any judicial inquiries and does not deliberate on one side or the other,” he said.

Sir James declined to speak to reporters and camera crews gathered outside his North Yorkshire home today, but could be seen through the tall gates of the property, moving between outbuildings and the main house.

**** GET A GREAT CHEAP MORTGAGE DEAL DESPITE THE CREDIT CRUNCH ****