View the article online at http://citywire.co.uk/money/article/a876712
Finally! City regulators investigate former HBOS bosses
More than seven years after the collapse of HBOS, City regulators have begun an investigation into the failed bank's former bosses.
More than seven years after the collapse of HBOS, City regulators have finally opened investigations into the former bosses of the bank, which was rescued by Lloyds and the government at the height of the financial crisis.
The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) have started investigations into 'certain former HBOS senior managers' after a damning report from lawyer Andrew Green into regulators' handling of the bank's failure.
Green last year said regulators should 'do what their predecessor, the Financial Services Authority (FSA) failed to do' and examine the case for investigating those who led the bank to its failure.
The FCA and PRA did not give any details on the identities of those they were investigating. 'These investigations will determine whether or not any prohibition proceedings should be commenced against the,' they said. 'The FCA and PRA continue to review materials with a view to making further decisions regarding other former HBOS senior managers.'
In his report, Green said the FSA's decision to focus solely on Cummings was wrong and that the regulator should have investigated more HBOS staff, including former chief executive Andy Hornby, former chairman Dennis Stevenson and former group finance director Mike Ellis.
He detailed in his report the FSA's consideration of an investigation into Hornby, but could find no documentation of the case being dropped.
While the former bosses could be banned from working in financial services as a result of the regulators' investigations, it is now too late for them to receive fines for their actions.
The regulators' move comes as the FCA faces scrutiny over its decision to drop a review of banking culture and an inquiry into allegations HSBC's Swiss private bank helped wealthy clients avoid tax. The regulator was this month forced to deny the inquiries were dropped due to pressure from the Treasury.
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