COMMONS

Treasury Committee has "lost confidence" in Paul Pester as CEO of TSB

08 June 2018

Following the Treasury Committee’s evidence session with TSB yesterday, Rt Hon. Nicky Morgan MP, Chair of the Committee, has written to Richard Meddings, Chair of TSB, on behalf of the Committee.

The letter states:

"As a result, the Committee considers that the TSB Board should give serious consideration as to whether Dr Pester’s position as Chief Executive of TSB is sustainable. The Committee has lost confidence in his ability to provide a full and frank assessment of the problems at TSB, and to deal with them in the best interests of its customers. It is concerned that, if he continues in his position, this could damage trust not only in TSB, but in the retail banking sector as a whole. I ask that the Board consider the Committee’s view as a matter of urgency."

Chair's comments

Commenting on the correspondence, Mrs Morgan said:

"Since the IT problems at TSB began, its public communications have often been complacent and misleading. This tone has been set from the top – by Paul Pester – and whether intentionally or not, he has not been straight with the Committee and TSB customers.

Dr Pester’s statements that ‘everything is running smoothly for the vast majority of our […] customers’ and that ‘there will be no barriers’ to customers switching accounts, and his denial that there were problems on TSB’s fraud reporting line, are all examples of this.

The Treasury Committee, therefore, has lost confidence in Dr Pester’s position as Chief Executive of TSB, and considers that the TSB Board should give serious consideration as to whether his position is sustainable."

Further information

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