MPs want oversight of FSA’s HBOS investigation

The Treasury select committee wants oversight of the FSA’s report into the failure of HBOS to ensure it is “fair and balanced”.

Andrew Tyrie 480

Yesterday, the FSA fined ex-HBOS director Peter Cummings £500,000 for failing to show due skill, care and diligence by pursuing an aggressive expansion strategy.

The conclusion of enforcement action means the FSA can now begin work on its report into the bank’s collapse and the FSA’s supervision of HBOS.

TSC chairman Andrew Tyrie wrote to FSA chairman Lord Adair Turner today to outline the committee’s intention to appoint specialist advisers to the report as it did with the FSA’s report into RBS’ failure, published in December 2011.

Tyrie says: “Work on the report should begin immediately. It must be comprehensive, covering the reasons for, and consequences of, both the Lloyds/HBOS merger and the earlier Bank of Scotland/Halifax merger.

“The public deserves to know exactly what happened at HBOS. The Treasury Committee will ensure that this happens.”

Earlier today Tyrie promised that the Parliamentary Commission on Banking Standards will consider the FSA final notice regarding Cummings.

Tyrie says: “Poor standards and corporate governance appear to have played a role in HBOS’ failure as with that of other banks.

“The Commission will want to consider the Final Notice carefully and take a decision on what further information may be required –and how to obtain it- to assist with our work. “