“Special advisers” to oversee FSA’s HBOS report
The chairman of the Treasury Committee, Andrew Tyrie MP, has written to Financial Services Authority (FSA) chairman, Lord Turner, saying that the Committee will require the FSA to conduct a comprehensive assessment of the reasons for HBOS’s failure, and of the FSA’s conduct in this area.
The work will be similar to that undertaken on Royal Bank of Scotland.
The letter also outlines the Committee’s intention to appoint specialist advisers to oversee the process and provide assurances that the report is a fair and balanced reflection of the evidence.
Explaining the Committee’s actions, Mr Tyrie said: “The FSA’s report on RBS … gave the public an explanation for RBS’s failure and the taxpayers’ bail out. It also exposed some of the shortcomings of the FSA.”
Work on the HBOS report should begin immediately, covering the reasons for, and consequences of, both the Lloyds/HBOS merger and the earlier Bank of Scotland/Halifax merger.
The news follows a £500,000 fine imposed by the FSA earlier this week on former HBOS director, Peter Cummings, for management failings relating to risk management when he was in charge of the bank’s corporate division.
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