MPs to investigate delays over HBOS collapse report

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The Treasury committee is to investigate the continued delays plaguing the release of a report examining the collapse of HBOS at the height of the financial crisis.

HBOS was taken over by Lloyds Banking Group in September 2008 and a report into what went wrong at the bank was commissioned in 2012.

But three years later the report is yet to be published after a series of delays.

The Financial Times reports the FCA and the Prudential Regulation Authority have told MPs that changes to the report mean a fresh wave of “Maxwellisation” needs to be carried out. This is where people who have been criticised in the report can argue their case before it is published.

The draft report currently runs to 500 pages and has led to up to 1,425 representations from 35 individuals who have been criticised.

In a progress update to MPs, PRA chief executive Andrew Bailey and FCA senior independent director Sir Brian Pomeroy said: “We are required to re-Maxwellise anybody in relation to whom, as a result of changes made to the report, we consider the level of criticism to have increased.

“We intend to commence this re-Maxwellisation process in the coming weeks. We will also need to consider any further representations we receive in response to this.

“Following the completion of this re-Maxwellisation process, we will need to obtain consent to publish in the report any ‘confidential information’.”

Treasury committee chairman Andrew Tyrie told the newspaper: “We have been waiting a long time. The review should be published as soon as possible.

“Once the review has concluded, I will be asking the Treasury committee’s independent reviewers to give the committee their views on the reasonableness or otherwise of these delays in the process.”