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Griggs disclosure

Lloyds pays out £76m so far to HBOS fraud victims

Russel GriggsLloyds Banking Group has offered £76 million of compensation to victims of a fraud at its HBOS Reading unit, it is disclosed today.

Scottish businessman Russel Griggs, who is overseeing the bank’s compensation process, told a parliamentary committee by letter that 170 former directors of companies impacted by the fraud have so far been offered payments, of whom 134 have accepted.

The compensation follows the jailing of six people including two former HBOS bankers for a combined 47 years for their role in the fraud at the expense of the bank’s business clients.

Nicky Morgan, chair of the cross-party Treasury Committee, said: “The fraud at HBOS Reading was a shocking crime that destroyed lives and livelihoods.”

She called on retired judge Linda Dobbs, to speed up her inquiry into whether Lloyds properly investigated the incident after it acquired HBOS in 2009.

The Financial Conduct Authority is separately conducting a probe into HBOS and what its executives knew of the fraud.

The Griggs review, led by the former Scottish Enterprise executive, has identified a total of 187 individual former directors of companies affected by the HBOS Reading fraud.

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