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Investigators trying into allegations of a cover-up of a £1bn pound fraud at HBOS have been advised by MPs they need to hand over their findings to parliament.
Treasury Select Committee chair Nicky Morgan says she discovered the main points disclosed in a leaked report into the alleged cover-up "deeply troubling".
The report claims HBOS didn't disclose the fraud earlier than being rescued by Lloyds through the monetary disaster.
Ms Morgan stated the committee will seek "maximum transparency".
The Lloyds Banking Group inside reportoften known as Project Lord Turnbullclaimed that since 2007, HBOS had a technique to hide a fraud at its Reading workplace the place corrupt bankers compelled enterprise clients to tackle a agency of so-called turnaround consultants.
But as a substitute of being helped, clients ended up ruined. Many misplaced their livelihoods, their marriages and their well being.
The report surfaced on the web final week and was later revealed by Kevin Hollinrake MP, chair of the All Party Parliamentary Group on Fair Business Banking.
- Read the Project Lord Turnbull report right here: Part one and Part two
In April, Lloyds Banking Group appointed Dame Linda Dobbs to analyze.
However, the bank hasn't dedicated to creating Dame Linda's findings public. MPs are insisting they should be turned over to parliament.
Maximum transparency
Ms Morgan stated: "The fraud at HBOS Reading was a shocking crime that destroyed lives and livelihoods. There are numerous investigations into the events, including the Dame Linda Dobbs Review and an investigation by the Financial Conduct Authority (FCA)."
She stated: "There are deeply troubling allegations raised in the "Project Lord Turnbull" report, that are on the coronary heart of Dame Linda's and the FCA's investigations. The committee will take into account the findings of this work when it is accomplished.
"In the meantime, we will not stop to press for maximum transparency. It is overwhelmingly in the public interest to understand how such a huge criminal fraud was allowed to happen, and why it took so long for it to come to light."
Lloyds stated it "remains determined to get to the bottom of what happened in HBOS Reading and we share the Treasury Committee's desire for transparency".
"We welcome the assertion by Nicky Morgan MP, chair of the Treasury Select Committee. We proceed to assist the FCA investigation and the separate, impartial Dame Linda Dobbs overview.
"We will, of course, assist the Treasury Select Committee in its consideration of these matters and will fulfil any requests made to us, including provision of Dame Linda's review findings."
"Very serious consequences"
The Project Lord Turnbull report was written in 2013 by a senior supervisor at Lloyds referred to as Sally Masterton who was serving to Thames Valley Police with inquiries into the fraud at HBOS's workplace in Reading.
Mrs Masterton got here throughout new info elevating considerations about a cover-up of the fraud.
After relaying her considerations to a senior government, who requested her to write-up her findings, Mrs Masterton produced the report.
Its government abstract stated: "Concealment set in motion a course of events that has had and continues to have far-reaching and very serious consequences, extending to the Lloyds TSB takeover. LBG is significantly exposed."
After writing a draft report and submitting its entrance part on 5 September 2013, Mrs Masterton was placed on enforced go away on 23 September 2013.
"The Reading incident"
In May 2008, the federal government knew HBOS was working low on money however wished to keep away from one other nationalisation. HBOS executives proposed to boost cash from the bank's shareholders to beef up its funds.
However, within the prospectus for that fund-raising, which is supposed to reveal all materials monetary info, there was no point out of a fraud.
Mrs Masterton discovered emails displaying HBOS executives did not wish to disclose their publicity to "the Reading incident" and mentioned retaining it comfortably under a restrict of 5% of web revenue from group persevering with operationsor £285m.
Later that yr Lloyds shareholders had been requested to approve the acquisition of HBOS.
Again, the prospectus talked about nothing concerning the fraudnor about £40bn kilos in "stressed assets"loans the place the bank won't get its a refund.