The Chairman of the Treasury Committee, Andrew Tyrie MP, today wrote to the Chairman of the Financial Services Authority, Lord Turner, making clear that the Committee will require the FSA to conduct a comprehensive assessment of the reasons for HBOS’ failure, and of the FSA’s conduct, similar to the work undertaken on RBS.
The letter also outlines the Committee’s intention to appoint specialist advisers to oversee the drafting process and provide assurance that the report is a fair and balanced reflection of the evidence.
Commenting on the letter, Andrew Tyrie MP, said:
"The FSA’s report on RBS, produced as a result of pressure from the Treasury Committee, was a great step forward. It gave the public an explanation for RBS’s failure and the taxpayers’ bail out. It also exposed some of the shortcomings of the FSA.
Lord Turner undertook to produce a similar report on HBOS once the FSA’s enforcement action had ended. I welcome the fact that the FSA has now confirmed this will happen.
Work on the report should begin immediately. It must be comprehensive, covering the reasons for, and consequences of, both the Lloyds/HBOS merger and the earlier Bank of Scotland/Halifax merger.
As with the RBS report, the Treasury Committee intends to appoint specialist advisers to oversee the drafting process and provide assurance that the final text is a fair and balanced reflection of the evidence.
The public deserves to know exactly what happened at HBOS. The Treasury Committee will ensure that this happens."