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Lloyds offers compensation of £76mln to victims of HBOS Reading unit fraud, say lawmakers

Reuters said 170 former directors of companies impacted by the fraud have so far been offered compensation, of whom 134 have accepted, according to a letter published by lawmakers on Thursday
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Six people including two former HBOS bankers were jailed last year for a combined 47 years for their role in the fraud

Lloyds Banking Group PLC (LON:LLOY) has offered compensation worth £76mln to victims of a fraud at its HBOS Reading unit, according to UK lawmakers, Reuters reported.

The newswire said 170 former directors of companies impacted by the fraud have so far been offered compensation, of whom 134 have accepted, according to a letter from Professor Russel Griggs - who is overseeing the bank’s compensation process - published by lawmakers on Thursday.

READ: Lloyds, RBS lead banks lower after UK court ruling raises threat of huge new PPI bill

Six people including two former HBOS bankers were jailed last year for a combined 47 years for their role in the fraud.

Reuters also reported that Nicky Morgan, chair of the cross-party Treasury Committee has called on Linda Dobbs, the retired judge probing whether Lloyds properly investigated the incident after it brought HBOS in 2009, to speed up her inquiry.

Dobbs has said it would likely take until the end of 2019 to complete the probe.

The UK’s Financial Conduct Authority (FCA) is separately conducting a probe into HBOS and what its executives knew of the Reading fraud.

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