An internal Lloyds Banking Group report written by a former manager at the bank and published on Tuesday alleges serious misconduct by the lender over the handling and disclosure of fraud at its HBOS Reading unit.
The report, written in 2013 after the Lloyds manager had taken her concerns to the police, alleges HBOS executives knew of the fraud as early as 2004 and failed to properly disclose it, with far-reaching implications given Lloyds’ takeover of HBOS in 2009.
It also states Lloyds mishandled its investigation and disclosure of the fraud following that takeover.
