HBOS probe calls for enforcement action

21 November 2015 – by Mike Cobb

Review of the bank’s failure cites Cummings and other senior managers.

A review into the failure of HBOS has concluded that its previous senior management should now be considered for enforcement investigations, including the man that led the bank’s boom-time drive into real estate, chief executive of corporate, Peter Cummings.

The FCA and PRA review found that the senior management, along with the board, established a business model that was predicated on continuous growth, ignoring the cyclical nature of certain markets, including real estate, and the risks that involved.

Despite warnings from regulator the FSA, management continued with a business model that was “unsustainable in the long-term”.

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