Lloyds Banking Group (LON:LLOY) has agreed to disclose to lawmakers the findings of a probe into what it knew about a fraud at HBOS’s Reading division, The Telegraph reports. Reuters meanwhile has revealed that the bailed-out lender has made compensation offers worth £76 million to victims of the scam which saw two corrupt employees impose a firm of turnaround consultants on their small business customers in exchange for bribes.
Lloyds’ share price has inched marginally higher in today’s session, having gained 0.22 percent to 62.44p as of 10:34 BST. The advance is in line with the broader UK market with the benchmark FTSE 100 index currently standing 0.37 percent higher at 7,601.05 points.
Lloyds to hand HBOS report to MPs
The Telegraph reported today that Lloyds had agreed agreed to a demand from the Treasury select committee to pass on to it a report on what its current and former bosses knew about the fraud at the HBOS Reading unit. The newspaper notes that the move could result in it being made public, with the Treasury committee having a track record of publishing explosive reports deemed to be in the public interest.
Nicky Morgan, chairman of the Treasury committee, welcomed the bank’s commitment but criticised the timescale for publication as ‘disappointing’.
Lender offers £76m to victims of fraud
In a separate development, Reuters reported that Lloyds had made compensation offers worth £76 million to victims of the fraud. The newswire quoted Russel Griggs, who is overseeing the bank’s compensation process, as saying in a letter published by lawmakers that 170 former directors of companies impacted by the fraud have so far been offered compensation, of whom 134 have accepted.
While Lloyds continues to be plagued by past misconduct at its HBOS division, the Serious Fraud Office dropped a criminal investigation into Libor manipulation at the FTSE 100 lender, citing ‘insufficient evidence’.