The City watchdog has linked up its two investigations into Lloyds Banking Group’s HBOS subsidiary.
HBOS took a £240m hit in 2007 after discovering a “serious control breakdown” in its Reading operation, according to information published by the City regulator for the first time.
Lloyds Banking Group has issued one-off payments of £35,000 each to victims of the fraud in its HBOS Reading branch after missing Friday’s deadline to make formal compensation offers.
Lloyds Banking Group is expected to extend the deadline for making compensation offers to victims of the HBOS Reading fraud, as it emerged only one of 64 affected customers has received compensation.
The government has sold its remaining shares in Lloyds Banking Group in a landmark moment for the banking sector almost a decade after the £20.3bn bailout of the high street lender.
The government is expected to sell off its remaining shares in Lloyds Banking Group in the coming week, marking a watershed moment for the sector after the financial crisis.
Lloyds Banking Group has appointed Dame Linda Dobbs to carry out an independent review into the HBOS scandal and has announced it expects to start making compensation pay-out offers to victims from late May.
The chair of the City's financial watchdog is facing calls to step down following the launch of a new investigation into fraud at HBOS.