Parliamentary Commission on Banking Standards - Fourth Report
'An accident waiting to happen': The failure of HBOS

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Here you can browse the report together with the Proceedings of the Committee. The published report was ordered by the House of Lords and the House of Commons to be printed 7 March 2013.

Contents

Terms of Reference

1 Introduction

2 The 'new force in banking'

3 The avenues to impairment

Introduction

Corporate

International

Treasury

Retail

Overall conclusions

4 A failure of internal control

The weaknesses of the federal model

The group risk function

5 A failure of regulation

The FSA's initial identification of weaknesses

The reduction of regulatory pressure

The change in regulatory focus

The scale and level of FSA engagement

The attitude of HBOS management to the regulator

Conclusions

6 'The best board I ever sat on'

The qualities and experience of the Board

Conclusions

7 Downfall

The need for and provision of funding

The endgame and its consequences

The full picture

The price of failure

8 Conclusion: a manual for bad banking

Conclusions and recommendations

Annex 1: The Corporate Division

Annex 2: The International Division

Annex 3: The Treasury Division

Annex 4: The Retail Division

Annex 5: Funding and Liquidity

Formal Minutes

Witnesses

List of published written evidence

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Prepared 5 April 2013