Lloyds Bank settles with HBOS whistle-blower
HBOS bosses concealed a massive fraud; Sally Masterton reported it in 2013 but has only now received an apology for how she was treated
London — Lloyds Banking Group said on Wednesday that it had settled with a former employee who accused former bosses of concealing a massive fraud at its HBOS Reading unit, prior to a record-breaking cash-call needed to keep the combined group afloat in 2009. The bank apologised to Sally Masterton, a former senior risk officer at Lloyds, and said that it had agreed to pay her financial compensation. Britain’s biggest mortgage lender, which took over HBOS in 2009, re-opened Masterton’s case earlier this year after coming under pressure over its treatment of her and how it handled her allegations. This followed the publication of a report, written by Masterton in 2013, which alleged HBOS executives knew of the fraud years before the takeover and failed to properly disclose it, with implications for the HBOS deal. On Wednesday, Lloyds said Masterton had acted with integrity and good faith at all times, and that she documented her concerns in a report following a request from the bank —...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.