Fraud claims against Lloyds Banking unit come to light
A report written in 2013 after a Lloyds manager took her concerns to police alleges HBOS executives knew of the fraud as early as 2004 and failed to properly disclose it
London — An internal Lloyds Banking report written by a former manager at the bank and published on Tuesday alleges serious misconduct by the lender over the handling and disclosure of a fraud at its HBOS Reading unit. The report, written in 2013 after the Lloyds manager had taken her concerns to the police, alleges HBOS executives knew of the fraud as early as 2004 and failed to properly disclose it, with far-reaching implications given Lloyds’s takeover of HBOS in 2009. It also states that Lloyds mishandled its investigation and disclosure of the fraud following that takeover. Lloyds had no immediate comment to make on the publication of the report. The bank has previously said it handed the report to regulators and the police in 2013 when it was completed. Legislators last week urged Lloyds to publish the report, which the bank had declined to do on the grounds it contains sensitive information about its customers. Scottish businessman Neil Mitchell, a frequent critic of Britain’...
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