The former head of the UK’s financial regulator, Sir Hector Sants, will give secrete evidence to the high court in a trial brought by shareholders against Lloyds Banking Group PLC (LON:LLOY) over its takeover of HBOS in 2008.
About 6,000 investors are suing Lloyds and five former directors, including former chairman Sir Victor Blank and ex-chief executive Eric Daniels, on claims the bank failed to disclose the true financial state of HBOS before they voted to approve the acquisition in November 2008.
READ: Lloyds takeover of HBOS was 'good value' for shareholders, court hears
Sants, who was chief executive of the now-defunct Financial Services Authority from July 2007 until June 2012, is a witness in the £550mln court case as he played an important role in the regulator’s response to the 2008 financial crisis. He is due to give evidence in mid-December and could shed light on why Lloyds agreed to buy HBOS at the height of the financial crash despite knowing the risks.
On Monday it emerged that Justice Nugee had made a court order in July allowing Sants to give evidence in private during the trial, means the press and public are excluded.
However, this can now be reported after new judge, Justice Norris, ruled that he court order could become public following an application by five media organisations on Monday.
The rof HBOS was announced in September 2008, just days after the Lehman Brothers collapsed, and the government eventually bought a 43% stake in Lloyds. Lloyds returned to private hands earlier this year following a successful turnaround.