Last week the BBC ran an expose about the BOS branch, which it says lent improper corporate loans and allegedly forced businesses to deal with a certain management consultancy firm, which led to their bankruptcy.
The MP for some of the alleged victims, MP for South East Cambridgeshire James Paice, took the case to a Commons debate today alongside several other MPs, who are all alleging foul play on the part of BOS bank executive Lynden Scourfield, the manager of the Reading branch.
Paice says: “The bank has to accept responsibility of these claims. The regulatory authorities have to invest this case thoroughly. The public now own most of BOS, and it seems clear to me that hundreds of millions of its loses stem from the malpractice in the Reading office.
“We are justified in demanding to know how this happened, why this happened and whether any criminality was involved.”
Paice says he and several other MPs met with BOS Corporate chief operating officer Philip Grant in January 2009, but Grant denied all the claims of the Reading borrowers.
Dr Andrew Murrison, MP for Westbury says: “Lloyds Banking Group has dismissed criticism and that simply won’t do.”
Another MP says: “You can just hear the sweeping of dirt under the carpet.”
Ed Vaizey, MP for Wantage and Didcot, says: “What is so astonishing is that the bank is taking a very legalistic view of the preceding without recognising there is a pattern here where Scourfield has engaged with numerous people. It is now up to HBOS to come to the table and follow a moral course, not a legal course, and put these people back in a position they were in before they dealt with HBOS.”