Authorization

Report on HBOS collapse prompts scrutiny of bosses’ conduct

A leaked internal report on the collapse of ailing lender HBOS has alleged two of the mortgage bank’s former chief executives tried to hide details of fraudulent lending that targeted struggling small businesses.
James Crosby, who ran HBOS until 2006, is among the senior executives accused of trying to cover up fraud alongside his successor Andy Hornby, the boss at the time of its collapse and now an executive at gambling operator GVC Holdings.
Two sources confirmed the contents of the report, which were first reported by the Mail on Sunday.
The 160-page document was unearthed days after Conservative MP Kevin Hollinrake told a parliamentary hearing that he had obtained the dossier, known internally as the Project Turnbull report.
Referring to the report directly, he said it contained allegations that senior managers within the bank had taken “clear, deliberate and documented action” to conceal fraud just before Lloyds’ disastrous takeover of HBOS in 2008.
Report on HBOS collapse prompts scrutiny of bosses’ conduct

Andy Hornby (l) with Eric Daniels, chief executive of Lloyds TSB, after announcing that Lloyds was taking over troubled HBOS in 2008

Credit:
AFP
“Status, seniority and background cannot be a barrier to justice or to holding to account those who are ultimately responsible for the devastation caused to so many lives and to the wider economy,” he said.
Those named in the report for alleged “non-disclosure” include Mr Hornby and Mr Crosby as well as former chairman Sir Dennis Stevenson, ex-corporate bank boss Peter Cummings and accounting giant KPMG. The review was completed in 2013 by an executive who has now left the bank.
A KPMG spokesman denied the allegations and said they had “no basis in fact”.
She added: “Over the last nine years multiple inquiries by the PRA, FCA and FRC have examined the events that led to the failure of HBOS in detail.
“We have co-operated with all of these inquiries when requested to do so and none have concluded that our work did not meet the applicable audit standards of the time.”
Report on HBOS collapse prompts scrutiny of bosses’ conduct

Andy Hornby gives evidence to the Parliamentary Treasury Committee in 2009

Credit:
PA Wire
Many small businesses went bankrupt as a result of the alleged fraud based at HBOS in Reading. The Financial Conduct Authority has also reopened its probe.
Lloyds said it appointed retired High Court judge Dame Linda Dobbs to undertake an independent review of the issues last year and the Project Turnbull report was among the documents being considered.
“We have reviewed the allegations and taken the information within the report seriously and it was shared with the regulators and Thames Valley Police in 2014,” a spokesman said. “It was not commissioned by the group, but was written by a former employee, whilst employed by us. We are determined to get to the bottom of what happened in HBOS Reading.”
Lloyds has said that the report contains “many unsubstantiated allegations about individuals ... the majority of which are made without any supporting evidence”.
The Daily Telegraphtried to contact those named in the report for comment but they were unavailable. 
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«    Август 2018    »
ПнВтСрЧтПтСбВс
 12345
6789101112
13141516171819
20212223242526
2728293031