Lloyds hires first black High court judge in scandal quiz
Lloyds Banking Group today hired the first black person to be appointed as a High Court judge to investigate its handling of the scandal at the HBOS Reading branch.
That fraud devastated scores of firms, as bankers took fees from struggling businesses to spend on holidays, hookers and drugs.
Lloyds said Dame Linda Dobbs will look into whether this scandal was investigated properly by top brass at HBOS and Lloyds after its takeover of the former Halifax building society.
This “independent” review will cover the eight years from early 2009 to the criminal trial in January this year which saw six bankers jailed.
Lloyds finally set aside £100 million in compensation for the victims after Professor Russel Griggs was appointed to decide on redress. Today it said it aims to start making payments, which could average £1 million per victim, by the end of May.
Nikki Turner, one of the anti-HBOS campaigners, said: “The appointment of Dame Linda Dobbs, as with the appointment of Professor Griggs, was made by Lloyds Banking Group without consulting the victims or their representatives, so the idea that they are ‘independent’ is preposterous.
“The terms of the review appear to exclude any actions by HBOS management prior to the sale to Lloyds and so would miss important parts of the cover-up.
"The timeframe, though on the face of it more rapid than other redress offers by banks, should be seen against the background of more than a decade of… denial by the bank.”