House of Commons Treasury Select Committee holds session on HBOS group failure report

UKParliament

Next week, the House of Commons Treasury Select Committee will question PRA (Prudential Regulation Authority) and FCA (Financial Conduct Authority) representatives as part of its inquiry into the HBOS failure report.

Evidence will be taken in two sessions, the first session beginning at 2:15pm on Monday 14 December, and the second session at 10am on Tuesday 15 December.

Legal and specialist advisers will also give evidence on the banking and insurance company's failure.

Monday 14 December 2015

At 2.15pm

• Andrew Green QC, Blackstone Chambers

At 3.30pm

• Iain Cornish, Specialist Adviser
• Stuart Bernau, Specialist Adviser

Watch the first session on Monday 14 December from 2.15pm on Parliament TV.

Tuesday 15 December 2015

At 10.00am

• Andrew Bailey, Deputy Governor for Prudential Regulation and Chief Executive Officer of the Prudential Regulation Authority
• Sir Brian Pomeroy CBE, Non-Executive Board Member, Financial Conduct Authority

Watch the second session on Tuesday 15 December from 10am on Parliament TV.

Further information

Read the Commons Treasury Select Committee's independent review regarding the FCA/PRA's report into the HBOS Group failure.

Thrugelmir

Reminded me of this old website.....

http://www.ianfraser.org/the-worst-bank-in-the-world-hboss-calamitous-seven-year-life/


Well worth a read.

Goldiegirl

I worked for Halifax for 28 years and I'm deeply saddened by what happened.


The seeds were sown long before he started, but I think Andy Hornby is very culpable for what happened. Of course, it was madness to hire him in the first place. Putting a greengrocer in charge of a bank is a recipe for disaster.


In summer of 2007, I was very concerned that something was going badly wrong. They were lending money on mortgages hand over fist, as the credit crunch was biting. Of course, no one would listen to a small cog in the wheel, so my colleagues and I at local level just had to wait for the impending disaster to happen, powerless to stop it.


I've had a quick look at Thugelmir's link. I'll read it in full when I have more time, but it looks very interesting

Thrugelmir

Goldiegirl wrote: »

The seeds were sown long before he started, but I think Andy Hornby is very culpable for what happened. Of course, it was madness to hire him in the first place. Putting a greengrocer in charge of a bank is a recipe for disaster.

I heard Paul Moore speak a few years ago. Admitted that he had had been paid off to maintain his silence. Finally it seems justice will be done.

PeacefulWaters

Goldiegirl wrote: »

I worked for Halifax for 28 years and I'm deeply saddened by what happened.


The seeds were sown long before he started, but I think Andy Hornby is very culpable for what happened. Of course, it was madness to hire him in the first place. Putting a greengrocer in charge of a bank is a recipe for disaster.


In summer of 2007, I was very concerned that something was going badly wrong. They were lending money on mortgages hand over fist, as the credit crunch was biting. Of course, no one would listen to a small cog in the wheel, so my colleagues and I at local level just had to wait for the impending disaster to happen, powerless to stop it.


I've had a quick look at Thugelmir's link. I'll read it in full when I have more time, but it looks very interesting

In 2007 they massively misjudged the mortgage strategy and missed the net lending target by a huge amount.
http://www.theguardian.com/business/2007/aug/11/mortgages.property

But residential and BTL mortgages weren't the problem. Sub-prime mortgages weren't the problem. The high street bank wasn't the problem.

Corporate and international lending was the problem.

Thrugelmir

PeacefulWaters wrote: »

Corporate and international lending was the problem.

Why has Lloyds subsequently racked up a £13 billion bill for HBOS's sales of PPI then?

Are you confusing HBOS with RBS?

PeacefulWaters

Thrugelmir wrote: »

Why has Lloyds subsequently racked up a £13 billion bill for HBOS's sales of PPI then?

Are you confusing HBOS with RBS?

PPI isn't the reason the bank crashed.

And c75% of LBG's PPI bill relates to Lloyds TSB.

System

There seems to be an idea that all of LBG's issues stem from HBOS.

Lloyds TSB wasn't in great shape either and was looking for a government bailout too.

PeacefulWaters wrote: »

PPI isn't the reason the bank crashed.

And c75% of LBG's PPI bill relates to Lloyds TSB.

Goldiegirl

PeacefulWaters wrote: »

In 2007 they massively misjudged the mortgage strategy and missed the net lending target by a huge amount.
http://www.theguardian.com/business/2007/aug/11/mortgages.property

But residential and BTL mortgages weren't the problem. Sub-prime mortgages weren't the problem. The high street bank wasn't the problem.

Corporate and international lending was the problem.

Well...... All I can say I was working in a department that dealt solely with residential and BTL mortgages in 2007..... and we were very concerned with the banks strategy. They wanted to lend money hand over fist in the middle of a credit crunch. Maybe it's as well they didn't meet their targets in August 2007, otherwise the situation could have turned out even worse.


We were all waiting for something bad to happen, and it did. It culminated in us all being made redundant a couple of years later. It might not have been a problem to the people on the outside looking in.... but it was a big problem to us at the time!