Lloyds share price: MPs to seek ‘maximum transparency’ over HBOS Reading fraud

Lender faces more pressure over its handling of issue

Lloyds share price: MPs to seek ‘maximum transparency’ over HBOS Reading fraud

MPs have said that they will seek ‘maximum transparency’ over Lloyds Banking Group’s (LON:LLOY) handling of the fraud at the Reading office of its HBOS unit, the BBC reports. The news comes after a Scottish businessman published a confidential report into 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 slipped into the red in today’s session, having given up 0.65 percent to 61.02p as of 09:46 BST. The group’s shares are underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.21 percent in the red at 7,521.91 points.

MPs to seek ‘maximum transparency’

The BBC reported this morning that MPs had said that investigators looking into allegations of a cover-up of the £1-billion fraud at Lloyds’ HBOS unit must hand over their findings to parliament. Treasury Select Committee chair Nicky Morgan noted that she had found the details disclosed in a leaked report into the alleged cover-up ‘deeply troubling,’ and that the committee would seek ‘maximum transparency’.

The newswire notes that the Lloyds internal report claims that since 2007, HBOS had a strategy to conceal the fraud at its Reading office. The FTSE 100 group acquired HBOS in 2009.

Lloyds to assist committee

Reuters meanwhile quoted a Lloyds spokesman as commenting that the bailed-out lender supported the investigations into the fraud, welcomed Morgan’s statement and would assist the committee in its consideration of the matter.

“Lloyds Banking Group remains determined to get to the bottom of what happened in HBOS Reading and we share the Treasury Committee’s desire for transparency,” the spokesman said in a statement.

As of 10:06 BST, Wednesday, 27 June, Lloyds Banking Group share price is 61.03p.

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