FCA expects report 'as soon as possible'

Watchdog merges two HBOS probes into one

HBOS trio
Former HBOS directors

Two investigations into alleged misconduct at HBOS have been merged into one, it was announced today.

The Financial Conduct Authority said it would pull together the probe into Lloyds Banking Group’s collapse in 2007-09 with a second inquiry into events surrounding the treatment of customers by HBOS employees in Reading.

Andrew Bailey, chief executive of the FCA, made the announcement at its annual meeting.

The first inquiry, which began in January last year, followed a report that found senior managers responsible for the bank’s collapse in the financial crisis.

The second related specifically to  events surrounding the discovery of misconduct within the Reading-based Impaired Assets team of HBOS. This unit dealt with companies in financial distress.

The investigation had been placed on hold in early 2013 pending the outcome of a criminal inquiry but was reopened in April following the conclusion of the criminal case which led to the jailing of some bankers.

Mr Bailey said today the inquiry would be “completed as soon as possible. I can’t put a date on that.

“There are two cases and the cases remain separate, but the evidence from Reading obviously informs the ongoing case.”


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