Former FSA chief executive John Tiner has dropped out of a consortium bidding for 316 Royal Bank of Scotland branches following last month’s scathing parliamentary report on the failure of HBOS.
Tiner, who was in charge of the FSA from 2003 to 2007, was brought in to lead the bid last month but the FT reports he has left now in order to pre-empt any potential censure over HBOS’ failure.
The parliamentary commission on banking standards slammed FSA regulation of HBOS as “thoroughly inadequate” and said regulators had “a lot of explaining to do”. The FSA is due to publish its own report into the collapse of HBOS later this year.
HBOS was bought by Lloyds Banking Group in 2008 when it was on the brink of collapse and the combined bank was then bailed out by the Government.
Former Standard Chartered chief executive Lord Davies will replace Tiner as head of the consortium that includes Standard Life, RIT Capital and private equity firms. The FT reports that Virgin Money, AnaCap, JC Flowers and Apollo are all in the running to buy the branches.
In response to the parliamentary report, former HBOS chief executive James Crosby has forfeited his knighthood and given up 30 per cent of his pension while business secretary Vince Cable is pushing to ban Crosby, ex-chief executive Andy Hornby and chairman Lord Stevenson from being company directors.
An MP has also called for ex-HBOS finance chief Phil Hodkinson to quit his role as Resolution director while FCA chairman John Griffith-Jones has faced calls to resign over his role in auditing HBOS with KPMG.