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Vince Cable wants to see if there is enough evidence to start disqualification proceedings against Andy Hornby, Lord Stevenson and Sir James Crosby, a source told the BBC.
BBC: Vince Cable 'examines ban for former HBOS directors'
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His decision not to intervene follows calls for former HBOS chief executive Sir James Crosby and ex-chair Lord Stevenson to lose their titles.
BBC: David Cameron will not intervene on HBOS titles
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And here is one important reason why the non-bankers on the Co-op's board are nervous about getting bigger in banking: they are acutely aware of how the non-bankers at HBOS, Sir James Crosby, Andy Hornby and Lord Stevenson, were pilloried by MPs earlier this month for making a total horlicks of their bank.
BBC: Will Co-Op pull out of banking?
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The report urged regulators to consider banning Sir James, Mr Hornby and former chairman Lord Stevenson from future roles in the financial sector.
BBC: Sir James Crosby
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But they hit back with Tony Stevenson's free-kick ripping through a poorly assembled defensive wall and James McArthur nudged them ahead with an arm.
BBC: Hamilton Accies 3-1 Dundee United