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Lloyds credit crunch boss sues for unpaid bonuses

Eric Daniels is suing Lloyds for £500,000 in unpaid bonus, according to reports.

 
Lloyds credit crunch boss sues for unpaid bonuses

The man in charge of Lloyds (LLOY) at the height of the credit crunch is suing the bank for hundreds of thousands of pounds in unpaid bonuses. 

According to , Eric Daniels and the former head of Lloyds' wholesale banking division Truett Tate filed the claim with the High Court this month. 

Daniels is understood to be seeking around £500,000 in compensation. It is not clear how much Tate is looking for. 

The move is bound to cause public outrage given Daniels was chief executive of the bank in 2009 when taxpayers were forced to shell out around £20 billion to keep the lender afloat. 

The bank has only just recently returned to the private sector after the government sold its 43% stake. 

As the credit crisis unfolded in the autumn of 2008, Daniels met with then prime minister Gordon Brown and promised to save HBOS following a dramatic collapse in its share price. 

After 36 hours of intense negotiations Lloyds thrashed out a deal to buy HBOS, with the purchase completing in January 2009. Absorbing HBOS put Lloyds balance sheet under extreme pressure, with the bank forced to suspend dividend payments. 

Investors were particular galled at suggestions that the then chair of Lloyds, Victor Blank, had struck the HBOS deal with Brown at a City drinks party. 

The deal is the subject of a £350 million shareholder lawsuit in which Daniels and other senior Lloyds managers have been named as defendants. The case is due to go to trial this year.

Since leaving Lloyds Daniels has taken up a number of posts in the City. These include a non-executive role with leading peer-to-peer lender Funding Circle.

He also serves as an adviser to Mayfair-based boutique investment bank Stoneharbour and private equity giant CVC Capital Partners.  

Tate left Lloyds a year after Daniels and in 2013 joined Australian finance group ANZ. 

Lloyds refused to comment on the case. 'As this matter is a live legal issue, it would be inappropriate to comment,' a spokesperson told The Times

A spokeswoman for Daniels declined to comment, while calls and emails to the law firm representing Tate did not get a response. 

11 comments so far. Why not have your say?

jeffian

Aug 22, 2017 at 10:24

That man Daniels has to be joking, surely? He should be behind bars rather than seeking 'compensation' from the company (and its many shareholders) he ruined.

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Michael Loveridge

Aug 22, 2017 at 11:10

Let's hope that Lloyds does a Taylor Swift, counterclaims 100 times what he's suing for and wins, bankrupting the greedy tw*t.

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Jeff Warren

Aug 22, 2017 at 17:53

I fail to understand how people, once regarded as intelligent clever managers ,can believe they are the victim of circumstances the collapse of the organisation they were in charge of.What school taught them to be so grasping & greedy.look at G E C ,R B S all ruined by avariitcus persons without scruple .They are the ones who should be sued for mismanagement

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Jeff Warren

Aug 22, 2017 at 17:56

oWhoops typo typo typo !!! Avaricous

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Franco

Aug 22, 2017 at 21:33

People are so ignorant they leave me speechless. All their arguments are based on "natural justice," but as the saying goes, the law has nothing to do with justice.

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jeffian

Aug 22, 2017 at 23:11

Franco, I think you're missing the point here. "Behind bars" is a turn of phrase rather than an accusation that he did anything illegal. What he did do was take Lloyds for political reasons into a 'takeover' (rescue) of a bankrupt business without doing appropriate due diligence and thereby lumbering Lloyds with loads of bad debt. I don't know what the specific terms of his bonus scheme were but I doubt that breaking the bank qualified for the full bonus.

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Simon N Welch

Aug 23, 2017 at 08:46

As a former Lloyds employee, I saw many colleagues financially wiped out by the HBOS purchase. Sadly, these colleagues foolishly believed senior management and saved as much as they could in the company share purchase schemes.

I cannot believe the brass neck of these two clowns to be demanding money, having effectively ruined the lives of so many of their (frankly naive) employees. Both, together with Blank, should hang their heads in shame at what they did to a financially sound institution.

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JohnR

Aug 24, 2017 at 18:58

A wonderful insight into the culture at the top of the cess pit.

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ian andrew

Aug 26, 2017 at 11:06

Just unbelievable. If I was in his position I would keep quiet and hope the law does not starting looking closely at me.

He might just have opened a Pandora box and hopefully he could be one of the first to get their just deserts...a prison sentence

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Franco

Aug 26, 2017 at 14:06

The cheek of the idiot !

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Nick-

Aug 26, 2017 at 20:55

The lawyers from both sides will laugh all the way to Lloyds and all this waste of cash will be paid for by the ripped off shareholders as normal.

Greed is good! It is hard wired in all of us.

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