HBOS | Common News Update

Nov162019 by adminNo Comments

Lloyds shareholders lose legal challenge over HBOS merger

Business

Almost 6,000 Lloyds shareholders have lost a multi-million-pound legal challenge against the bank's takeover of HBOS.The shareholders had claimed they were "mugged" when Lloyds recommended the deal in 2009 without disclosing the true financial state of HBOS. They argued that if they had been given essential financial details they would not have backed the deal, and that they had lost money as a result.As the scale of HBOS's loan losses emerged after the merger, British taxpayers were forced to pump in more than £20bn to keep the combined entity afloat.During the hearing at the High Court in London, a lawyer for the shareholders said the directors had recommended the "disastrous" acquisition but, based on the information they had, no reasonable director would have done so. ...

FCA issues £45.5m fine over HBOS Reading fraud scandal

Business

By James Sillars, business reporter Bank of Scotland (BoS) has been fined £45.5m by the City regulator for failures to disclose suspicions of fraud at its scandal-hit Reading branch.The Financial Conduct Authority (FCA) said the bank first identified suspicious conduct in the Impaired Asset Team (IAT), based in the Berkshire town, in early 2007. It said that it was not until July 2009 that regulators were provided with full disclosure.Six people were jailed in 2017 in connection with the fraud, including two former HBOS managers. Image: Former Deal or No Deal TV host Edmonds allegedly fell victim to the fraud by former staff at HBOS Reading The £245m scam saw bank manager Lynden Scourfield approve...

Lloyds under fire over HBOS fraud compensation

Business

Lloyds Banking Group has said it is close to offering compensation to 30 customers caught up in a criminal conspiracy involving former bankers at its HBOS subsidiary. The bank has already missed its own deadline of 30 June for paying redress to all victims. So far, only five have accepted compensation offers.MPs and victims have criticised the compensation scheme.The fraud saw small businesses pressed into hiring "turnaround consultants".Two corrupt HBOS bankers pressured the customers into using consultants Quayside Corporate Services, led by David Mills. He and his accomplices bribed the bankers with cash, gifts and prostitutes, then used their relationship with the bank to bully the business owners into handing over exorbitant fees and, eventually, control of their companies. The busine...