....in another phase of legal wrangling with disgraced former executives
The long-delayed report into the near collapse of Halifax Bank of Scotland (HBOS) faces fresh hold-ups after being caught in another phase of legal wrangling with disgraced former executives. The report, which has still not seen the light of day nearly seven years after the downfall of HBOS, had been expected this summer following a series of earlier delays. But last night it emerged there could be an even longer wait. The Bank of England has written to individuals involved in the investigation – including the men at the helm during years of reckless lending – giving them yet another chance to veto damning information from being published. The report is being compiled by the Bank and the Financial Conduct Authority. It will decide whether the FCA should take action against individuals including disgraced former executives James Crosby and Andy Hornby, along with chairman Lord Stevenson.
The prospect of yet another hold-up was met with fury from MPs last night, who branded the drawn-out process as ‘absurd’ and called for the findings to be published without delay. The formal investigation into HBOS’s downfall was launched by the Financial Services Authority in September 2012. It was meant to be published the following year. But the Financial Conduct Authority, which replaced the FSA in April 2013, moved the deadline to the end of last year. That was missed and the report could not then be published until after the General Election. The delays were caused largely by a process known as ‘Maxwellisation’, named after the late newspaper tycoon Robert Maxwell, which allows those criticised to challenge what is written about them.....Read more here
A report into the collapse of HBOS is due later and is expected to be critical of its former bosses.
The Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) will issue their report on the bank's 2008 collapse later. The bank was rescued by Lloyds TSB, which itself had to be bailed out by the government to the tune of £20bn. In 2013, Banking Standards Commission chair Andrew Tyrie said there had been "a colossal failure of leadership".The Commission said the regulators should look at whether two former chief executives, James Crosby and Andy Hornby, and its former chairman, Lord Stevenson "should be prohibited from holding a position at any regulated entity in the financial sector". The report will also look at the reasons behind HBOS' failure, and its supervision by the previous regulator, the Financial Services Authority (FSA). HBOS whistleblower Paul Moore, former head of regulatory risk at the bank, told the BBC the bank's strategy was "growth at all costs, stack 'em high, sell 'em cheap, go at breakneck speed".......Read more here