January 8, 2013 / 10:54 PM / in 6 years

Two ex-HBOS bank managers charged in $56 million loan fraud

LONDON (Reuters) - Two former employees of HBOS have been charged by UK prosecutors over business loans made through a high street bank for about 35 million pounds ($56 million), the Crown Prosecution Service (CPS) said on Tuesday.

The pair, who were charged with six others, were described in the CPS statement to be senior managers for the bank and were charged with conspiracy to corrupt, fraud and money laundering.

The men were given numerous high-value gifts by a financial consultancy in return for appointing the firm to administer bank loans to companies in trouble, the CPS said.

They, along with six others who include two employees of the consultancy, will appear before Reading Magistrates Court on January 18.

HBOS had to be rescued in 2008 through a government-engineered takeover by Lloyds Banking Group (LLOY.L) which weeks later, had to ask for a 20 billion pound government bailout.

Last month, a former HBOS chief executive apologised for the first time for his role in the high-risk lending strategy that pushed the British bank close to collapse.

Reporting by Brenda Goh; Editing by Bernard Orr

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below