HBOS: Authorities close six year probe into former execs
HBOS’s former executives are now off the hook after the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) closed a six year investigation into the bank’s collapse.
The watchdogs announced yesterday they would not take any further action.
“In line with standard practice, the authorities’ independent decision-makers reviewed the matters under investigation and have each determined that no enforcement action should be taken against these former HBOS senior managers,” the FCA and PRA said in a joint statement.
This means that James Crosby, who was at HBOS’s helm until 2006, and his successor Andy Hornby will not face regulatory consequences, the Times reported.
Former HBOS corporate banking chief Peter Cummings received a £500,000 fine in 2012 for his “failure to exercise due skill, care and diligence.”
A combination of Halifax and the Bank of Scotland, HBOS had to be rescued by Lloyds TBS and a £20bn taxpayer bailout following a lending spree.
The investigation was launched by the FCA and PRA in 2016 following pressures from the Treasury select committee.
Former committee chairman Lord Tyrie told the Times the news was “disappointing, but scarcely surprising.”
CityAM has approached Hornby for comment.