Financial Conduct Authority links up its two HBOS probes, Andrew Bailey reveals

William Turvill
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Lloyds TSB Merges With HBOS
Lloyds has faced criticism from Noel Edmonds in recent months over the handling of its HBOS compensation scheme (Source: Getty)

The City watchdog has linked up its two investigations into Lloyds Banking Group’s HBOS subsidiary.

Financial Conduct Authority (FCA) boss Andrew Bailey said today the inquiries would be “completed as soon as possible. I can’t put a date on that.”

The first probe, started in January last year, is focused on “certain former HBOS senior managers” and their role in the collapse of the bank between 2007 and 2009.

The second was formed to investigate misconduct within the HBOS Reading office, which dealt with financially distressed companies. This probe was put on hold in 2013 and reopened this year following the conclusion of the criminal inquiry which led to the jailing of some HBOS bankers.

Speaking at the FCA’s annual meeting today, Bailey said: “We are... joining it with the investigation that we announced in January last year.”

Reuters reported that he added: “There are two cases and the cases remain separate, but the evidence from Reading obviously informs the ongoing case.”

Lloyds has come under a large amount of pressure in recent months over the handling of a compensation process relating to businesses that suffered at the hands of the HBOS Reading office. TV presenter Noel Edmonds is among those seeking compensation.

Read more: Lloyds defends HBOS payout process (as Noel takes to the airwaves)

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