13th November 2015
After a two year delay, a report into failings at HBOS will be published that will challenge the regulator over its failure to investigate more executives.
The report will question why the regulator, which at the time was called the Financial Services Authority (FSA) but is now called the Financial Conduct Authority (FCA), only pursued action against HBOS executive Peter Cummings, who was head of corporate lending and was banned and fined £500,000, according to the Financial Times.
The report has been long awaited – it was due in 2013 but the publication was put on hold until after this year’s election.
At the height of the financial crisis HBOS was taken over by Lloyds Banking Group, which received a £20.5 billion bailout from taxpayers.
Andrew Tyrie, chairman of the Treasury Select Committee, has been critical of the delays to the publication of the report.
‘This s not before time – it is seven years since HBOS collapse. The production of this report results from persistent pressure from the Treasury Select Committee and the Parliamentary Commission on Banking Standards to find out what really happened,’ he said.
‘There is now a reasonable prospect that the public will at least have an opportunity for a full explanation of this catastrophic failure. They deserve it – £20.5 billion of taxpayers’ money was required to bail HBOS out.’
The Financial Times said that the report will say the FSA was under-resourced at the time of the investigation into HBOS.