dChan - Q Origins Project Archive

MPs call for resignation of Lloyds Bank CEO

A group of MPs have called for Lloyds Bank chief executive António Horta-Osório to resign over the bank’s handling of a fraud that affected scores of small business customers.

Kevin Hollinrake, the Conservative chair of the All-Party Parliamentary Group on Fair Business Banking, accused Lloyds of mistreating a whistleblower who attempted to draw attention to the crimes, and for creating a biased compensation scheme he described as “an affront to any notion of natural justice”.

Mr Hollinrake said in a parliamentary debate on Tuesday that Mr Horta-Osório’s position had become untenable, and called on the Financial Conduct Authority to investigate whether he had breached his responsibilities under its Senior Managers’ Regime.

Although the fraud took place before Mr Horta-Osório joined Lloyds, he was chief executive by the time Sally Masterton, a former employee in its high-risk division, wrote a report detailing the crimes in 2013.

Six people were jailed last year for their actions between 2003 and 2007, which involved pushing distressed HBOS customers toward a corrupt restructuring consultancy that stripped their assets. Lloyds took over HBOS in 2008.

Lloyds appointed the academic Russel Griggs to lead an independent process to compensate victims in 2017. The majority of victims who claimed redress have since accepted compensation offers, but the process has been criticised for being slow, untransparent, and biased in favour of the bank.

Last month it also apologised and paid compensation to Ms Masterton for how she was treated after she criticised the bank in her report.

A spokesperson for Lloyds said:

“The Griggs Review has been a voluntary process put in place by the Group with the clear objective of providing fair and reasonable compensation for customers in a way which was quicker and less expensive than through a court process. The Group consulted with victims as well as the Financial Conduct Authority in the design of the Griggs Review, which has been supported by a team of independent legal and accountancy professionals.

“We continue to believe the Griggs Review was the right approach to secure compensation for victims of the HBOS Reading fraud. We are grateful for the sensitivity to the victims, as well as the expertise, care and attention that Professor Griggs has brought to the Review.”

https://www.ft.com/content/29c8f7ae-02e8-11e9-9d01-cd4d49afbbe3