Lloyds Urged to Publish Full Review of HBOS Reading Fraud

Lloyds Banking Group is facing mounting pressure to release the full, unedited version of an independent review into its handling of the £1 billion HBOS Reading fraud. The call comes from Dame Meg Hillier, Chairwoman of the Treasury Committee, who has urged the bank to ensure full transparency once the Dame Linda Dobbs review is finalized.

The review, launched in 2017, was set up to examine whether Lloyds attempted to conceal the extent of the fraud, which was uncovered in 2007. Concerns have been raised that Lloyds may only publish selected excerpts or key findings, rather than the complete document.

Background of the HBOS Reading Scandal

The fraud at HBOS Reading, which Lloyds inherited after rescuing the bank in 2009, involved corrupt bankers and external consultants who exploited small and medium-sized businesses through fraudulent lending schemes. Many firms were financially ruined, and the scandal led to six criminal convictions in 2017.

While Lloyds has since paid out over £1.3 billion in compensation and legal costs, critics argue that the bank initially attempted to downplay the scandal and was not fully cooperative with law enforcement investigations.

Ongoing Delays in Publishing the Dobbs Review

The Dobbs review was initially expected to conclude within months, but after seven years, it remains unfinished. Lloyds has repeatedly stated that it will publish the review’s findings, but has not made a clear commitment to releasing the full report.

Dame Linda Dobbs, a retired High Court judge leading the investigation, has said she intends to draft the report in a way that would allow full public disclosure. However, concerns remain over whether Lloyds will agree to its complete release.

Calls for Transparency Grow

The latest push for full publication was prompted by Andy Agathangelou, founder of the Transparency Task Force, a consumer group advocating for openness in financial services. In a letter to the Treasury Committee, Agathangelou urged parliamentary scrutiny over the delay and called for the unredacted report to be made public.

In her response, Dame Meg Hillier emphasized that publishing the full review is essential, although she acknowledged that further committee involvement could extend the already lengthy process. Nonetheless, she reinforced that the Treasury Committee expects Lloyds to publish the complete report.

A spokesperson for Lloyds Banking Group said:
“We stand by our commitments to the committee and look forward to cooperating with them.” However, they declined to confirm whether the full report would be placed in the public domain.

Andy Agathangelou welcomed Hillier’s statement, calling it a “clear and unambiguous” signal to Lloyds that only full transparency will satisfy those impacted by the scandal.

With growing political and public pressure, the final decision on whether Lloyds will fully disclose the Dobbs review remains uncertain.