TSC appoints team to scrutinise FSA’s impending report into HBOS failure

The Treasury select committee has appointed a specialist team to review the FSA’s impending report on the failure of HBOS.

The team includes former Treasury second permanent secretary Sir Nicholas Monck, former Chelsea Building Society chairman and chief executive Stuart Bernau and former Yorkshire Building Society chief executive Iain Cornish.

They will be tasked with ensuring the FSA’s report, the publication date of which is still unknown, is a fair and accurate reflection of the available evidence and to review whether it is a fair and balanced summary of the regulator’s supervisory activities in the run up to the bank’s failure.

TSC chairman Andrew Tyrie says: “These reports are needed to guide regulatory reform in the UK.

“Unless regulators are frank about what went wrong last time there will be little chance of avoiding a repetition in the future.”

HBOS nearly collapsed in 2008 before it was rescued by Lloyds TSB.

In September, the FSA fined former HBOS executive director Peter Cummings £500,000 and banned him from holding a senior position within the UK financial services industry in what is the highest fine levied on an individual for management failings.

Cummings, who the FSA said had pursued an “aggressive growth strategy”, was chief executive of HBOS’ corporate division between January 2006 and 2008.