Hbos Reading: Treasury Select Committee joins calls for further transparency over ‘shocking’ fraud case
A second group of MPs have weighed into the Hbos Reading fraud case, following last week's explosive report, demanding "maximum transparency" over what took place.
The Treasury Committee chair Nicky Morgan has written to Dame Linda Dobbs, who is currently carrying out an independent review of the case, saying the Committee expects to receive the "full, unredacted findings" of her work.
Morgan has also written to Professor Russel Griggs, who was appointed by Lloyds as the independent reviewer of HBOS Reading customer cases, asking for information about the compensation scheme for the victims.
And Morgan has written to colleague Kevin Hollinrake, co-Chair of the All Party Parliamentary Group (APPG) on Fair Business Banking, regarding last week's revelations, which suggest top executives at HBos understated the extent of liabilities left by the fraud to regulators and to shareholders ahead of the takeover of the stricken bank by Lloyds in early 2009. It also alleges serious misconduct by auditors KPMG.
Hollinrake has since called for the Serious Fraud Office and National Crime Agency to get involved.
Morgan said: “The fraud at Hbos Reading was a shocking crime that destroyed lives and livelihoods. There are numerous investigations into the events, including the Dame Linda Dobbs Review and an investigation by the FCA.
“There are deeply troubling allegations raised in the ‘Project Lord Turnbull’ report, which are at the heart of Dame Linda’s and the FCA’s investigations. The committee will consider the findings of this work when it’s completed.
“In the meantime, we will continue to press for maximum transparency. It is overwhelmingly in the public interest to understand how such a huge criminal fraud was allowed to happen, and why it took so long for it to come to light."
Morgan added: “Small businesses have been subject to some appalling treatment by banks. The Committee’s inquiry into SME Finance is examining what needs to be done to prevent such cases from happening again, and how trust between banks and small businesses can be restored.”