Friday 20 September 2019

Lloyds in whistleblower deal

Lloyds Banking has settled with an ex-employee who accused former bosses of concealing a massive fraud at its HBOS Reading unit, prior to a record-breaking cash call needed to keep the combined group afloat in 2009. (Yui Mok/PA)
Lloyds Banking has settled with an ex-employee who accused former bosses of concealing a massive fraud at its HBOS Reading unit, prior to a record-breaking cash call needed to keep the combined group afloat in 2009. (Yui Mok/PA)

Lloyds Banking has settled with an ex-employee who accused former bosses of concealing a massive fraud at its HBOS Reading unit, prior to a record-breaking cash call needed to keep the combined group afloat in 2009.

The bank apologised to Sally Masterton, a former senior risk officer at Lloyds, and said that it had agreed to pay her financial compensation.

Britain's biggest mortgage lender, which took over HBOS in 2009, reopened Ms Masterton's case earlier this year after coming under pressure over its treatment of her and how it handled her allegations.

That followed the publication of a report, written by Ms Masterton in 2013, which alleged HBOS executives knew of the fraud years before the takeover and failed to properly disclose it, with implications for the HBOS deal.

Yesterday, Lloyds said Ms Masterton had acted with integrity and good faith at all times, and that she documented her concerns in a report following a request from the bank - a point it had previously disputed.

"I am pleased that Lloyds Banking Group has listened to me ... and has recognised the distress and inconvenience this has caused me," Ms Masterton said. She took leave from her duties and left in 2014.

Reuters

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