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More criticism of postponement

Report into 2008 collapse of HBOS ‘faces further delay’

HBOS trioA report into the collapse of HBOS is facing a further delay as a result of legal wrangling with former executives of the bank.

The report had been expected this summer but it emerged tonight that there could be an even longer wait.

Those at the top of the bank at the time of its failure in 2008 are being given more time to provide information, according to the Daily Mail website thisismoney.

Ultimately, the Bank of England and the Financial Conduct Authority will decide whether the action should be taken against individuals including former chief executives James Crosby and Andy Hornby, as well as chairman Lord Stevenson.

This latest delay will infuriate those who have already waited seven years for the results of an investigation into HBOS’s downfall.

An inquiry was launched by the former Financial Services Authority in September 2012 which had been due the following year.

It is thought some of the principals in the inquiry have used a facility enabling them to challenge some of the evidence.

Conservative MP Mark Garnier told the Daily Mail website, thisismoney: “This is completely absurd. This report needs to be published as soon as possible – it is no good having a crisis unless you learn lessons from it.”

Paul Moore, a former employee at HBOS who was sacked after warning bosses about risky lending at the bank, was quouted by thisismoney, saying: “This is ludicrous and just gives those who were responsible for the demise of HBOS another chance to kick the truth into the long grass.”

Only one former executive, Peter Cummings, has been punished for his role in the downfall of HBOS, which was rescued by Lloyds in September 2008.Cummings, who ran the bank’s corporate division, was fined £500,000 in 2012 and received a lifetime ban from the City.

Picture: BBC
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