LONDON (Reuters) – A gaggle of British MPs mentioned they are going to publish a report into what Lloyds Banking Group knew a couple of fraud at its HBOS Reading unit, following years of campaigns for full disclosure by its victims.
The fraud was certainly one of Britain’s worst-ever banking scandals and the report claims that HBOS in 2008 hid the fraud in an try to stop the failure of a rights problem and its subsequent takeover by Lloyds through the monetary disaster.
Kevin Hollinrake, chair of the All-Party Parliamentary Group on Fair Business Banking, mentioned the cross-party group would use public curiosity legal guidelines to publish the so-called ‘Project Lord Turnbull Report’, until Lloyds itself publishes first.
Six folks together with two former HBOS bankers have been jailed final 12 months for a mixed 47 years for his or her position within the fraud, during which the conspirators enriched themselves on the expense of the financial institution’s business purchasers.
The report, written by a Lloyds worker in 2013, has circulated privately amongst related stakeholders for years however has not been made out there to the general public due to the delicate buyer information contained in it.
Publication is more likely to increase additional questions over the timing of Lloyds and HBOS’s disclosures concerning the fraud, a matter of public curiosity, Hollinrake mentioned in a letter addressed to Lloyds’ Chief Executive Antonio Horta-Osorio dated June 13 and seen by Reuters.
A spokesman for Lloyds declined to remark. The financial institution has beforehand mentioned that it handed the report to regulators and the police as quickly because it was accomplished.
The threatened publication of the report comes at a delicate time for Lloyds, because it makes an attempt to maneuver previous a painful legacy of missteps earlier than and through the monetary disaster.
That course of has been sophisticated by ongoing scrutiny of the financial institution’s dealing with of the HBOS fraud.
Britain’s monetary watchdog is conducting a probe into HBOS and what its executives knew of the fraud, whereas a retired choose is probing whether or not Lloyds then correctly investigated the incident after it purchased HBOS in 2009.
Britain’s National Crime Agency has additionally widened a evaluation into the fraud at HBOS to look into allegations that fell exterior of the preliminary felony investigation.
Reporting by Lawrence White, modifying by Sinead Cruise and Susan Fenton