Lloyds share price: Businessman publishes report on fraud at HBOS unit

Report alleges misconduct by lender’s executives

Lloyds share price: Businessman publishes report on fraud at HBOS unit

A Scottish businessman and frequent critic of Britain’s big banks has published a confidential report by a former Lloyds Banking Group (LON:LLOY) manager into the fraud at the blue-chip lender’s HBOS Reading unit, Reuters has disclosed. Six people were jailed last year for their role in the fraud which saw corrupt employees at the division impose a firm of turnaround consultants on their small business customers in exchange for bribes.

Lloyds’ share price has fallen into the red in today’s session, having given up 0.54 percent to 61.24p as of 09:46 BST. The decline is largely in line with losses in the broader London market, with the benchmark FTSE 100 index currently standing 0.64 percent in the red at 7,582.82 points. The group’s shares have given up a little over 10 percent of their value over the past year, as compared with less than a one-percent gain in the Footsie.

Businessman publishes HBOS report

Reuters reported today that Neil Mitchell, a campaigner against banks including Lloyds and bailed-out peer Royal Bank of Scotland (LON:RBS), had published the report into the fraud at the HBOS Reading unit. The report, which alleges misconduct by Lloyds and HBOS executives over the handling of the fraud, was written in 2013 and has been the subject of debate among some British lawmakers in recent weeks.

The news comes after MPs said last week that they would use public interest laws to release the report unless the FTSE 100 group itself published it first.

No immediate comment from Lloyds

The newswire noted that the bailed-out lender had no immediate comment on today’s news. Lloyds as previously said that it handed the report to regulators and the police back in 2013 when it was completed.

As of 10:04 BST, Tuesday, 19 June, Lloyds Banking Group share price is 61.12p.

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