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Lloyds in talks with whistleblowing author of report on HBOS fraud

  • 20/07/2018
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Lloyds in talks with whistleblowing author of report on HBOS fraud
Lloyds Banking Group is in talks with the author of a whistleblowing report on the HBOS fraud in Reading.


Sally Masterton wrote the Turnbull report in 2013 in which it claimed that the fraud at HBOS Reading branch had been concealed before it was taken over by Lloyds.

The report also claimed the bank had been warned of the fraud.

Masterton subsequently left the bank.

MP Kevin Hollinrake, co-chair of the All Parliamentary Group on Fair Business Banking, has previously called for a public enquiry over the alleged concealment of fraud at HBOS.

He also called into question Lloyds’ treatment of Masterton.

A spokesman for Lloyds said: “We can confirm that we continue to be in a private dialogue with the author of the Turnbull report who we believe has acted with the best of intentions.”

The bank said the report was handed to the Financial Conduct Authority (FCA) in 2014.

Dame Linda Dobbs is carrying out an independent review into whether the issues relating to HBOS in Reading were investigated were appropriately reported to the authorities at the time by Lloyds Banking Group, following its acquisition of HBOS in 2009.

A spokesman said: “Once Dame Linda’s independent review has completed, her report will be shared with the FCA and the Treasury Committee.

“In addition, the FCA is investigating the extent and nature of the knowledge of the discovery of misconduct within HBOS Impaired Assets office in Reading and HBOS’ communications with the regulator after the initial discovery of the misconduct.”

The fraud cheated hundreds of small business owners out of hundreds of millions of pounds.

Last year six people were jailed for their part in the scheme.

Lloyds has put aside £100m to compensate victims of the fraud.

Noel Edmonds is seeking £73m in compensation through the courts, as he alleges the fraud was behind the collapse of his business Unique Group.

The FCA is investigating HBOS, which collapsed at the height of the financial crisis.

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