HBOS Reading Fraud Report Released

A report on the fraud that took place HBOS’ Reading branch, put together in 2013 by Sally Masterson a whistle-blower who worked for Lloyds, has been published.

Last week, MP Kevin Hollinrake urged António Horta-Osório to publish the report on the basis that it was a:

“document of very substantial significance in circumstances where Lloyds itself, according to Thames Valley Police, has exhibited regrettable reticence in opening itself up to public scrutiny”.

Unsurprisingly Lloyds didn’t but Neil Mitchell – Scottish businessman and vocal critic of big banks – did.

The report alleges Lloyds failed to act on evidence of fraud provided to it by both customers and internal investigators and that executives at HBOS concealed the fraud at Reading, prior to Lloyds’ 2008 takeover.

The FCA is investigating how much the people in charge at HBOS knew about the fraud and whether the regulator was misled. The National Crime Agency has widened its own investigations.