Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Ex-HBOS chief lambasts ‘out of control’ FSA

3 comments
Ex-HBOS chief lambasts ‘out of control’ FSA

Former HBOS director Peter Cummings has lambasted the Financial Services Authority (FSA) over its handling of his fine and ban from financial services.

Cummings, former chief executive of HBOS corporate, was fined £500,000 in September and banned from financial services for his part in the bank’s collapse.

In an interview with a sub-committee of the Parliamentary Commission on Banking Standards, Cummings labelled the regulator as ‘out of control’ and said it was ‘unfair and sinister’ that he had been the only bank director singled out for regulatory action following the banking crisis.

‘We are not the only failed bank. There are at least four or five of them, and I find it curious that I was singled out,’ he said. ‘I think it is sinister and curious.’

He added that his lawyers believed the FSA penalty was ‘unlawful’, and that the regulator had reduced the fine from £800,000 to £500,000 when confronted.

‘I do think it bewildering and bizarre that in the space of a meeting and two phone calls – because they did not want me to take it to judicial review – they reduced the fine to £500,000,’ he said.

‘Frankly, it was like living in an American soap opera. I find it bewildering, bizarre and downright impossible to believe this country has an organisation that is out of control to the extent that it is. I think it is unacceptable behaviour.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Volatility is back, Europe's future & Ethical's key moment

Volatility is back, Europe's future & Ethical's key moment

This week’s episode of Investment Pulse takes a look at European prospects, FTSE volatility and whether public pressure is about to provide a push for ethical investment

Play Volatility spike: How ETFs can soften the blow

Volatility spike: How ETFs can soften the blow

ETFGI’s Deborah Fuhr discusses the role of ETFs in client portfolios during volatile market conditions

Play Winter market warmers, the post QE world and timing the Fed

Winter market warmers, the post QE world and timing the Fed

This week’s episode of Investment Pulse looks at the winding down of quantitative easing, whether to try and time a US Federal Reserve rate rise and if strong seasonal performers can reverse recent market slumps

Wealth Manager on Twitter