The Treasury select committee is set to grill FCA director of supervision Clive Adamson over his role in the Co-operative Bank saga.
Adamson, who was also FSA director of the regulator’s major retail groups division from 2008 to 2011, will face the panel on Tuesday as part of its investigation into the failed Co-op Bank bid for 632 Lloyds Banking Group branches.
The Co-op Bank ran into trouble earlier this year when it revealed a £1.5bn capital black hole caused by losses on commercial loans, chiefly from the 2009 merger with Britannia Building Society.
Adamson was involved in the regulatory scrutiny of the Britannia merger in his previous role. Since 2011 he has also been responsible for supervising firms, including when the Co-op Bank revealed a £1.5bn capital black hole.
The MPs’ inquiry was launched in June to examine the failed Lloyds’ branches bid but has also investigated other issues around the Co-op’s governance and regulatory oversight in more depth.
MPs have already quizzed the Prudential Regulation Authority and blasted regulatory failings over the Co-op Bank.
The Treasury has ordered an independent review of the Co-op Bank while the FCA is investigating the bank and its directors.
There is also a police investigation into former Co-op Bank chairman Reverend Paul Flowers over drugs allegations.
In addition the Co-op Bank has launched an internal review of governance to be lead by former Treasury financial secretary Lord Paul Myners.
Adamson will appear before MPs at 10am on 7 January.