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| Version 1 | Version 2 |
|---|---|
| Lloyds to pay £100m fraud compensation | Lloyds to pay £100m fraud compensation |
| (about 1 hour later) | |
| LLoyds has announced that it is setting aside a further £100m, to compensate customers who lost money in a fraud scandal. | |
| Six people, two of whom had worked for Halifax Bank of Scotland (HBOS) - owned by Lloyds - were jailed in February. | Six people, two of whom had worked for Halifax Bank of Scotland (HBOS) - owned by Lloyds - were jailed in February. |
| The court heard they stole hundreds of millions of pounds from small businesses who were their clients. | The court heard they stole hundreds of millions of pounds from small businesses who were their clients. |
| At the same time, the Financial Conduct Authority (FCA) announced that it is re-opening an enquiry into the fraud. | At the same time, the Financial Conduct Authority (FCA) announced that it is re-opening an enquiry into the fraud. |
| Lloyds has already set aside at least £250m to cover other costs arising from the case, which was centred on the HBOS office in Reading. | Lloyds has already set aside at least £250m to cover other costs arising from the case, which was centred on the HBOS office in Reading. |
| "As I have stated before, we would like to express our deep regret and apologies to any customers directly affected by the criminal behaviour of these individuals," said António Horta-Osório, the chief executive of Lloyds Banking Group. | "As I have stated before, we would like to express our deep regret and apologies to any customers directly affected by the criminal behaviour of these individuals," said António Horta-Osório, the chief executive of Lloyds Banking Group. |
| "We are absolutely determined that victims of the crimes committed at HBOS Reading are fairly, swiftly and appropriately compensated. We take responsibility for putting right the wrongs that were committed at HBOS Reading at the time." | "We are absolutely determined that victims of the crimes committed at HBOS Reading are fairly, swiftly and appropriately compensated. We take responsibility for putting right the wrongs that were committed at HBOS Reading at the time." |
| FCA investigation | FCA investigation |
| Some of the small businesses that lost money from the fraud collapsed as a result. | Some of the small businesses that lost money from the fraud collapsed as a result. |
| The bank said it would provide such victims with immediate payments on a case-by-case basis. Those in financial difficulty will be helped with day-to-day living costs. | The bank said it would provide such victims with immediate payments on a case-by-case basis. Those in financial difficulty will be helped with day-to-day living costs. |
| They will also be helped with legal fees, and have their existing debts written off. | They will also be helped with legal fees, and have their existing debts written off. |
| Professor Russel Griggs has already been appointed to assess which customers will get compensation, and how much they will receive. | |
| Read more on the case: | Read more on the case: |
| Former HBOS manager found guilty of corruption and fraud | Former HBOS manager found guilty of corruption and fraud |
| HBOS: A highly unusual fraud case | HBOS: A highly unusual fraud case |
| HBOS fraud: "They caused me to give birth early" | HBOS fraud: "They caused me to give birth early" |
| Ex-HBOS banker "sold his soul for swag" | Ex-HBOS banker "sold his soul for swag" |
| In addition, Lloyds will appoint an independent lawyer to determine whether the bank investigated the crime properly at the time. | |
| The FCA said it would resume an investigation into the fraud, which it suspended in 2013, pending an enquiry by Thames Valley Police. | The FCA said it would resume an investigation into the fraud, which it suspended in 2013, pending an enquiry by Thames Valley Police. |
| It will examine who knew what within HBOS, and whether they told the regulator. | |
| The crimes took place before Lloyds bailed out HBOS, in October 2008. | The crimes took place before Lloyds bailed out HBOS, in October 2008. |