Regulators to investigate former HBOS bosses

The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) said on Thursday they have decided to start investigations into certain former HBOS senior managers.

“These investigations will determine whether or not any prohibition proceedings should be commenced against them,” said the FCA.

“The FCA and PRA continue to review materials with a view to making further decisions regarding other former HBOS senior managers.”

HBOS, which included the operations of Halifax and Bank of Scotland, had to be rescued in a takeover by rival Lloyds in 2008 that was encouraged by the UK government.

Lloyds itself was then bailed out at a cost of 20 billion pounds.

These decisions follow a report by Andrew Green QC regarding the Financial Services Authority’s enforcement actions following the failure of HBOS.

This report recommended that the FCA and PRA should consider whether any former HBOS senior managers should be the subject of an enforcement investigation.

The regulators did not identify any of the former managers they will investigate.

The regulators indicated last year they would consider banning up to 10 individuals.

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Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.