MPs pledge to get tough on HBOS review

Tim Wallace
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THE NEW review into the failure of Halifax Bank of Scotland (HBOS) will face an additional hurdle in the form of an independent adviser appointed by a committee of MPs, it was announced yesterday.

The Financial Services Authority fined former HBOS executive Peter Cummings £500,000 on Wednesday, banning him for life from working in the industry for his role in bringing the bank to its knees. Now those proceedings are over, the FSA can begin a report into the collapse.

The aim is also to “inform a wider internal and public understanding of the causes of failure during the crisis (to the extent not already covered by the RBS report),” it said.

The Treasury Select Committee appointed City grandee Sir David Walker to supervise the drafting of that report. And yesterday the TSC said it will appoint a similar figure to do the same for HBOS to make sure “the report is a fair and balanced reflection of the evidence.”