FSA may take enforcement action against HBOS
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The Financial Services Authority has confirmed that it has launched an investigation into HBOS and may take enforcement action.
It says once it has finished the investigation it will launch a wider review into the events that led up to its near collapse in 2008.
In a letter from Adair Turner, chairman of the FSA, to Andrew Tyrie, chairman of the Treasury Select Committee, Turner says: “HBOS’s failure resulted in the need for significant public support, via emergency liquidity assistance, guarantees and equity injection.
“And HBOS’s role in the pre-crisis credit boom was a key element in the developments which led to the financial crisis and the macro economic harm which it has caused.
“There is therefore a public interest in knowing what happened at HBOS.”
The regulator says the HBOS investigation is still ongoing, and the final result of the investigation not yet known.
It adds: “Whilst the enforcement process is ongoing, it would not be appropriate to launch a wider review.”
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Readers' comments (8)
Ian Windsor-Smith | 21 Jul 2011 2:44 pm
Are not Nat West/RBOS, Lloyds/TSB/RBS GUILTY of the same or worse? Is this not a classic example of an easier target being made the scapegoat? How many think this will change or resolve anything?Will RDR remove there monopoly? Doubtful!
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Anonymous | 21 Jul 2011 2:54 pm
..And who will hold the FSA and their Senior Executives etc to account for their part in the banking debacle, oh I forgot - they don't answer to anyone, not even parliament it would seem!!!
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Maurice Edgington | 21 Jul 2011 3:13 pm
In response to Ian Windsor-Smith. I am certain that the FSA has carried out an investigation re RBS Group and that at this time there is ongoing debate about how much of their findings are to be published. With regard to Lloyds group, Lloyds took over HBOS being encouraged by the then Prime Minister Mr Brown to do so in order for the whole HBS business not to completely collapse. So I welcome further information re HBOS and hopefully the final report will be what happened at the FSA to not spot the problems brewing before the disaster.
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Dazed and Confused | 21 Jul 2011 3:52 pm
The FSA?? Quis custodiet ipsos custodes?
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David Wright | 22 Jul 2011 11:38 am
Typical FSA closing the stable door after the horse has bolted. The FSA act as a dictatorship who take no notice of the findings of the treasury select committee findings over RDR. So once again you will see the farce they will have created under RDR by 2012 but it will be too late by then, the damage will have been done and the average man in the street will have no one to turn to for sound financial advice because only the high net worth clients will be looked after. Shame on you FSA
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Bobby | 22 Jul 2011 3:31 pm
It is most odd how the FSA are the only ones to come out of all this completely blameless. Apparently its all the brokers fault. Thanks for clearing that up FSA, carry on the good work.
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QuoMan | 22 Jul 2011 4:07 pm
Ian W-S, if you can't even get "there" and "their" right, heaven help us!
I hope that you're a filing clerk or tea boy and not an IFA.
How do you know that FSA aren't looking at the other banks?
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psl | 25 Jul 2011 3:30 pm
Assuming they find some guilt, who will they punish. The executives at HBOS responsible for the debacle have long since departed, as have most of the Lloyds executives who made the disastrous decision to buy HBOS. So they can only punish the shareholders who surely must have suffered enough already, and hinder the current management in their efforts to restructure the business. At least a big fine would boost the FSA closing down party coffers though.Lets hear it for the FSA. Well done.
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