Arab Today, arab today britains hbos bank bosses under fire over 2008 collapse
Last Updated : GMT 19:55:34
Arab Today, arab today
Arab Today, arab today

Britain's HBOS bank bosses under fire over 2008 collapse

Arab Today, arab today

Arab Today, arab today Britain's HBOS bank bosses under fire over 2008 collapse

Halifax Bank of Scotland (HBOS)
London - AFP

The ex-bosses of failed British bank HBOS bear "ultimate responsibility" for its 2008 collapse, an official report concluded on Thursday, and will now face a new regulatory probe.

The report, published the Financial Conduct Authority and the Bank of England's Prudential Regulation Authority, blamed senior HBOS management -- but also slammed inadequate regulation from the now-defunct Financial Services Authority (FSA) watchdog.

"Ultimate responsibility for the failure of HBOS rests with its board," read the damning report.

"However, another striking feature of HBOS's failure is how the FSA did not appreciate the full extent of the risks HBOS was running and did not take sufficient steps to intervene before it was too late."

It added: "The board and senior executive management of HBOS failed to set an appropriate strategy, and also failed to challenge a flawed business model that placed inappropriate reliance on continuous growth without due regard to the risks involved".

Halifax Bank of Scotland (HBOS) was saddled with toxic property investments and was rescued by Lloyds TSB in a 2008 takeover that was brokered by the then-Labour government.

However, after the ill-fated deal, Lloyds Banking Group (LBG) then received a vast state bailout at the height of the global financial crisis.

The government took an initial 39-percent stake but this has since been cut to 25 percent.

Independent lawyer Andrew Green, who partly wrote the report, said the FSA failed to conduct a broader investigation into senior executives.

"The scope of the FSA’s enforcement investigations in relation to the failure of HBOS was not reasonable," Green wrote.

"The decision-making process adopted by the FSA was materially flawed."

He added that there is "plainly a public interest in this being considered afresh".

So far, ex-director Peter Cummings -- who ran the commercial arm at HBOS -- is the only boss to be investigated and penalised by the FSA. He was fined in 2012 and banned for life from working in London's financial district.

Green said Thursday that regulators must consider whether other former senior managers -- including ex-chief executive Andy Hornby and former chairman Dennis Stevenson -- should also be probed.

The FSA watchdog was replaced in 2013 by the PRA, which oversees banks, while the FCA was created to oversee consumer protection.

The two regulators added Thursday that they would now review "whether further enforcement action should be taken" and publish their findings early next year.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today britains hbos bank bosses under fire over 2008 collapse Arab Today, arab today britains hbos bank bosses under fire over 2008 collapse

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Reasons for the delay 'On the Stairs of Servants'

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday