Council Leader Sir Richard Leese said it would "put even more pressure on our services" and the council would have to "radically rethink how we provide for Manchester people".
Past HBOS figures are coming under more pressure after the bank's ex-chief Sir James Crosby quit his current posts and offered to give up his knighthood.
In his report, following a year-long review, Sir George, a former chief executive of IT company Unisys, said the pressure to deliver quick results to the potential detriment of the longer-term development of a company had "become an entrenched feature of the UK business environment".
According to the article, Sir Michael - who is one of Parliament's most senior officials - was on the receiving end of pressure from Downing Street in the wake of Queen Mother's death.