Peter Cummings, the man behind Bank of Scotland’s failed corporate bank, has been handed a “warning notice” and punitive fine by the Financial Services Authority.

He is understood to have rejected the allegations of the City regulator, which has issued what is thought to be a seven-figure penalty to the Scottish banker — one of the FSA’s largest ever fines. Mr Cummings’s Corporate Division was alleged to have epitomised the excesses of the property and buy-out boom. Analysts believe its deal-making resulted in a £20bn cost to the bank on a £120bn loan book.

Over more than a decade, Mr Cummings became a major figure at BoS, driving an increasing share of the bank’s profits. But in a report last month, the FSA said that “there were significant issues as to the quality, reliability and utility of the available management information which directly affected the effectiveness with which the risks of the business could be assessed, managed and mitigated”. When the property market collapsed in 2007 and 2008 and liquidity dried up many of the riskiest deals collapsed.....Read more here--: City regulator fines former BoS banker - Telegraph