Old Banagar was a friend of Siggard, and one of the soldiers of Entsteig at the service of Earl Edgewulf. Old Banagar died along with most of the soldiers at the battle of Blackmarch against the demonic forces led by the demonlord Assur.
Siggard remembered during the Night of Souls something that Old Banagar had told him years ago. That hanged men had angry souls, that's why they are hoisted at crossroads so they don't find their way back to take vengeance.