Financial Conduct Authority chairman John Griffith-Jones is facing calls to resign after he failed to flag up huge losses at HBOS in his role as chairman of accountancy firm KPMG.
KPMG audited HBOS before its collapse and gave the bank a clean bill of health.
Last week, the Parliamentary Commission on Banking Standards published a damning report about HBOS’s management. It revealed the bank was shouldering £47bn of losses when it was audited by KPMG.
According to the Daily Mail, Labour MP and Treasury select committee member John Mann has called for Griffith-Jones to quit. He says: “He should absolutely resign. These grossly failed businessmen should not be in any senior positions in any organisation. Griffith-Jones played along with this Alice in Wonderland economics and the taxpayers are now footing the bill.”
The FCA, which will publish a report on the bank’s collapse, says Griffith-Jones will not be involved. A spokesman says: “John Griffith-Jones was subject to a rigorous appointment process by HM Treasury, and had an appointment hearing with the Treasury select committee.”
KPMG may be investigated by the Financial Reporting Council over its audit of HBOS. The FRC says it will review the commission’s report and the FCA’s conclusions “to see whether there is a case for an investigation under our powers”.