HBOS failure review to proceed and report by year end

HBOS sign

The Financial Conduct Authority (FCA) has said the review into why HBOS bank failed will be published by the end of the year.

The review can proceed now that disciplinary proceedings linked to its collapse have concluded.

HBOS was rescued at the height of the 2008 financial crisis with a government engineered takeover by rival Lloyds.

The FCA and Bank of England said much work has already been done on the review.

The probe will look to summarise why HBOS failed, and make any recommendations on how to avoid future collapses.

"The aim is to publish the final report by the end of this year," the two regulators said in a statement.

The terms of reference for the review means that any people criticised in the review will have a right of reply before publication.

Regulators had been waiting for enforcement proceedings against Peter Cummings, the head of corporate lending at HBOS until it was rescued by Lloyds, to be completed.

He was fined £500,000 by financial regulators over his role in the bank's collapse, and banned from working in the banking industry

Mr Cummings described the decision as "Orwellian".

The new review will look at whether regulators "should consider afresh whether any other former members of HBOS's senior management should be subject to an investigation with a view to prohibition proceedings".

More on This Story

The BBC is not responsible for the content of external Internet sites

More Business stories



  • Gift, genericTaboo gifts

    Which presents can cause offence?

  • Workman underground at Farringdon's Crossrail stationHuman moles

    The people digging giant tunnels under London

  • Women in shared roomCrowded house

    Five ways to survive sharing a bedroom with strangers

  • Devi AsmadiredjaHermit Queen

    The German woman who swapped home for a mountain cave

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.