20th Jul 2018 07:40
LONDON (Alliance News) - Lloyds Banking Group PLC has decided to review its treatment of a whistleblower who warned that the bank failed to act on HBOS fraud, the Financial Times newspaper reported Friday.
The newspaper, citing people familiar with the matter, reported that Lloyds has reopened the case of Sally Masterton, a former employee in the bank's high-risk division.
Masterton left due to unexplained circumstances in 2014 after authoring a report that claimed that certain executives at HBOS "concealed" a fraud at their branch in Reading, England, before the bank's takeover by Lloyds at the height of the financial crisis.
The report concluded that Lloyds had received, and failed to act on, evidence of the fraud, theft and money laundering.
Masterton's report on HBOS takeover has become the focus of interest since its release in June by UK lawmaker Kevin Hollinrake, who co-chairs the All Party Parliamentary Group on Fair Business Banking.
According to FT, Lloyds has come under increasing pressure to explain what it did about Masterton's concerns, and its treatment towards Masterton.
Lloyds's Chairman Norman Blackwell is behind the initiative to reopen Masterton's case after he concluded the case was damaging the bank's reputation, according to the newspaper. Masterton's case has been delegated to Lloyds Non-Executive Director Alan Dickinson.
https://www.ft.com/content/179b83d8-8b5d-11e8-bf9e-8771d5404543
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