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MPs want oversight of FSA’s HBOS investigation

Andrew Tyrie 480

The Treasury select committee wants oversight of the FSA’s report into the failure of HBOS to ensure it is “fair and balanced”.

Yesterday, the FSA fined ex-HBOS director Peter Cummings £500,000 for failing to show due skill, care and diligence by pursuing an aggressive expansion strategy.

The conclusion of enforcement action means the FSA can now begin work on its report into the bank’s collapse and the FSA’s supervision of HBOS.

TSC chairman Andrew Tyrie wrote to FSA chairman Lord Adair Turner today to outline the committee’s intention to appoint specialist advisers to the report as it did with the FSA’s report into RBS’ failure, published in December 2011.

Tyrie says: “Work on the report should begin immediately. It must be comprehensive, covering the reasons for, and consequences of, both the Lloyds/HBOS merger and the earlier Bank of Scotland/Halifax merger.

“The public deserves to know exactly what happened at HBOS. The Treasury Committee will ensure that this happens.”

Earlier today Tyrie promised that the Parliamentary Commission on Banking Standards will consider the FSA final notice regarding Cummings.

Tyrie says: “Poor standards and corporate governance appear to have played a role in HBOS’ failure as with that of other banks.

“The Commission will want to consider the Final Notice carefully and take a decision on what further information may be required –and how to obtain it- to assist with our work. “

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. This is a very interesting departure. To the best of my belief this hasn’t happened before.

    My guess is this is what comes if you get snotty with the TSC. It would seem that this time round the biter might get bit. Wow!

    It may also scupper his patrician majesty Turner from landing the BoE Governorship.

  2. ken170647 youtube 14th September 2012 at 9:51 am

    Turner for BoE?? Why are Turner and King still in their jobs? This is grotesque. These “regulators” (sic) presided over the greatest catastrophe in the history of capitalism. Let’s have a proper clear out of those who are still left and tainted, including anyone left who has anything to do with RDR. And while we are at it, let the regulator listen to the TSC at this 11th hour and postpone RDR!

  3. The message seems clear – The TSC don’t trust the FSA. Nice of them to join the club.

  4. Tyrie says: “Poor standards and corporate governance appear to have played a role in HBOS’ failure as with that of other banks.”

    Let us not forget either the poor standards of regulatory governance. Still, as “an open and transparent regulator”, the FSA should have no problems with the oversight of its work by a team of TSC-appointed specialist advisers. We just hope that none of them will be members of the same club or wearers of the same old school tie as any of the FSA’s top brass.

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