Ex-banker hit with record fine
Thursday 13 September 2012
Printable
EmailA banker was fined a record £500,000 by the City watchdog today for his part in the collapse of Halifax Bank of Scotland (HBOS).
Former head of corporate banking at HBOS Peter Cummings, who has also been banned from taking a senior role in British banks, was behind many of the bank's high-profile deals before it was bailed out by the taxpayer.
The Financial Services Authority said that despite being aware of the growing problems in the economy, Cummings had presided over a culture of aggressive growth without the controls in place to manage the risks associated with that strategy.
Cummings - a friend of billionaire Topshop owner Sir Philip Green - reportedly left HBOS with a £660,000 pay-off and a £6 million pension pot.
When Lloyds took over HBOS at the height of the banking crisis it was forced to write off more than £20 billion.
Cummings rejected the decision "in its entirety."
If you appreciated this article then please consider donating to the Morning Star's Fighting Fund to ensure we can keep developing your paper.
Editorial
Iraq ruling is no vindication
Defence Secretary Philip Hammond believes himself vindicated by the High Court ruling that his Iraq Historic Allegations Team (IHAT) is independent.
Features
Turmoil set to continue
A look at the causes and possible outcomes of Silvio Berlusconi and his right-wing coalition's lead in the polls.
Our government has put us at risk
Attacks such as yesterday's horrific murder in Woolwich didn't happen before the 'war on terror.' It's time we recognised the consequences of the conflicts we've unleashed