September 4, 2018 / 1:06 PM / in 8 months

TSB CEO has taken responsibility for 'fundamental failings' - BoE's Carney

FILE PHOTO: A sign is displayed outside a branch of the TSB bank in central London March 12, 2015. British challenger bank TSB has received a takeover approach from Banco Sabadell, valuing the business at about $2.6 billion and sending its shares soaring by nearly a quarter. REUTERS/Neil Hall/File Photo

LONDON (Reuters) - Bank of England Governor Mark Carney said on Tuesday senior managers needed to take responsibility for failings on their watch, when asked about the earlier resignation of TSB Bank Chief Executive Paul Pester.

Pester resigned from his role at TSB on Tuesday, several months after a botched IT update in April plunged the lender into chaos, locking thousands of customers out of their accounts and leaving them vulnerable to fraud.

“Responsibility has now been taken by the CEO for a series of quite fundamental failings,” Carney said, while appearing before members of parliament on Britain’s Treasury Committee.

He said the decision was in line with regulation prescribed by the Senior Managers Regime, which was put in place after the financial crisis to ensure top executives are held accountable for failings in financial firms.

Reporting by David Milliken and Kylie MacLellan; Writing by Emma Rumney; editing by Sinead Cruise

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