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MPs threaten to publish internal Lloyds report into HBOS Reading fraud

MPs have threatened to publish an explosive report into what Lloyds and HBOS bosses allegedly knew about a major fraud at HBOS’s Reading branch.
Conservative Kevin Hollinrake, who chairs the all-party group on banking, has written to Lloyds chief Antonio Horta-Osorio saying he will use public interest laws to publish the so-called "Project Turnbull" report within seven days, unless the bank publishes it first.
The report names four former senior bankers and accountancy firm KPMG for alleged “non-disclosure”.
The document, dated to 2013, was written by a senior Lloyds employee.
In his letter, Mr Hollinrake said the report calls out bosses for allegedly concealing the fraud to avoid derailing a rights issue and subsequent takeover of ailing HBOS during the financial crisis.
The four individuals and KPMG were named in Parliament by Kevin Hollinrake last month. They include James Crosby, who ran HBOS until 2006, and his successor Andy Hornby, the boss at the time of its collapse and now an executive at gambling operator GVC Holdings. 
MPs threaten to publish internal Lloyds report into HBOS Reading fraud

Lloyds chief Antonio Horta-Osorio has received a letter from MPs warning they intend to publish a report into HBOS Reading

Credit:
Jason Alden/Bloomberg 
Also named are former chairman Sir Dennis Stevenson and ex-corporate bank boss Peter Cummings.
Mr Hollinrake has also written to Bill Michael, the chairman of KPMG, outlining his intention to publish the report.
The HBOS Reading scandal led to six people being jailed for a combined 47 years and six months last year.
The scam involved distressed firms being referred to a consultancy between 2003 and 2007, and then asset-stripped, with bribes for managers including luxury holidays.
Despite the criminal case ending with convictions last year, Lloyds has continued to be dogged by the scandal.
Britain’s financial watchdog is carrying out an investigation into HBOS and what bosses knew, while retired judge Dame Linda Dobbs is probing whether Lloyds properly looked into the incident.
Meanwhile the National Crime Agency is looking into allegations that fell outside the initial criminal investigation.
TV presenter Noel Edmonds is separately pursuing a civil claim accusing the HBOS Reading branch of pushing his entertainment company into administration.
MPs threaten to publish internal Lloyds report into HBOS Reading fraud

TV presenter Noel Edmonds is pursuing a civil claim against Lloyds over HBOS Reading

Credit:
Jonathan Brady/PA Wire
Mr Edmonds bought a 67p share in Lloyds in order to harrangue the board during questioning at the bank’s AGM in Edinburgh last month.
He accused the bank’s bosses of playing “Jail or No Jail” over their handling of the past fraud. Lloyds has been compensating victims of the fraud in recent months. Mr Edmonds rejected an out-of-court offer which he said was worth ?3.6m.
A Lloyds spokesman said: "The report in question was provided to regulators and the police a number of years ago, [and] at the time the author provided it to the group."
The spokesman added that Dame Linda Dobbs's review had a copy of the report and the bank believed it was the "appropriate forum" for considering it.
A spokesman for KPMG said: “We strongly refute these allegations, which we believe to have no basis in fact. We have not seen the report in question and had no involvement in its preparation. 
"We have cooperated fully with the detailed investigations undertaken, including those by the PRA / FCA and the FRC, none of which concluded that our work did not meet the applicable audit standards of the time.”
The Daily Telegraph has tried to contact those named in the report for comment but they were unavailable. 
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