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You can find the current article at its original source at https://www.theguardian.com/business/live/2018/jun/06/tsb-boss-faces-mps-it-meltdown-fca-criticism-paul-pester-business-live
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| TSB boss faces fresh grilling from MPs over IT meltdown – business live | TSB boss faces fresh grilling from MPs over IT meltdown – business live |
| (35 minutes later) | |
| TSB’s problems worsened last week when the bank sent letters of apology to the wrong customers. | |
| Some of the letters included other people’s names, addresses and customer reference numbers. That means they could breach Britain’s new data privacy laws, the General Data Protection Regulation. | |
| Andy Barratt, UK managing director of cyber security consultancy Coalfire, thinks TSB could be fined by the Information Commissioner for the breach. The ICO was also concerned that hundreds of TSB customers saw the wrong account details in the hours after April’s migration. | |
| Barratt explains: | |
| “The apology letter glitch is the latest development in this ongoing TSB saga. MPs are clearly taking this issue seriously but, crucially, we’re yet to see the ICO weigh in following its own investigations. The regulator will be particularly concerned that ‘data breaches’ of this magnitude have now happened more than once – both immediately before and then again after the implementation of GDPR. | |
| “The power to hand out major fines that GDPR affords the regulator means that the price of poor data protection is about to become far easier to quantify. | |
| TSB customers are still reporting problems accessing their accounts to the bank’s social media unit, six weeks after the IT problems began. | TSB customers are still reporting problems accessing their accounts to the bank’s social media unit, six weeks after the IT problems began. |
| Many are saying they can’t get through to TSB’s telephone helplines.... | Many are saying they can’t get through to TSB’s telephone helplines.... |
| I'm really sorry for this Chelsie. Our Telephone Banking team are currently experiencing a higher volume of calls than usual, have you now been able to speak to someone regarding this? Sophie | I'm really sorry for this Chelsie. Our Telephone Banking team are currently experiencing a higher volume of calls than usual, have you now been able to speak to someone regarding this? Sophie |
| I'm really sorry Mark. Unfortunately we're unable to arrange for someone to call you, I'm sorry for nay inconvenience caused. Please rest assured they'll answer as soon as possible. Sophie | I'm really sorry Mark. Unfortunately we're unable to arrange for someone to call you, I'm sorry for nay inconvenience caused. Please rest assured they'll answer as soon as possible. Sophie |
| Others report that they can’t see their accounts online, or make certain payments. | Others report that they can’t see their accounts online, or make certain payments. |
| Hello Andy. We are sorry to read that. Thanks for contacting us. We have looked into this for you and your accounts are being reflected accurately in our systems. However, we currently have a problem with displaying the information online and through the mobile app. 1/2 Ese | Hello Andy. We are sorry to read that. Thanks for contacting us. We have looked into this for you and your accounts are being reflected accurately in our systems. However, we currently have a problem with displaying the information online and through the mobile app. 1/2 Ese |
| Any idea when it will be up and running, I need to transfer asap for a mortgage payment before i get another late payment! pic.twitter.com/LDKbDvGjuy | Any idea when it will be up and running, I need to transfer asap for a mortgage payment before i get another late payment! pic.twitter.com/LDKbDvGjuy |
| The Financial Conduct Authority appears to have put Paul Pester in a real spot, by accusing him of being too optimistic about the state of TSB’s tech problems. | The Financial Conduct Authority appears to have put Paul Pester in a real spot, by accusing him of being too optimistic about the state of TSB’s tech problems. |
| If the Treasury committee feel Pester wasn’t straight with them last month, they could put him under serious pressure. Pester has already given up one bonus - for completing the IT migration. Could his job be at risk? | If the Treasury committee feel Pester wasn’t straight with them last month, they could put him under serious pressure. Pester has already given up one bonus - for completing the IT migration. Could his job be at risk? |
| The Times’s banking editor, Katherine Griffiths, suggests TSB may needed to be rebranded as Sabadell (the Spanish company which bought TSB in 2015). | The Times’s banking editor, Katherine Griffiths, suggests TSB may needed to be rebranded as Sabadell (the Spanish company which bought TSB in 2015). |
| But Pester might not oversee such a change, if he finds himself “up against the wall” over his handling of the crisis, she adds. | But Pester might not oversee such a change, if he finds himself “up against the wall” over his handling of the crisis, she adds. |
| Technology failure puts TSB boss in crosshairs of trigger-happy MPs - today's @KGriffithsTimes column https://t.co/uTjnRnl37l via @TimesBusiness pic.twitter.com/USZpXwzwsy | Technology failure puts TSB boss in crosshairs of trigger-happy MPs - today's @KGriffithsTimes column https://t.co/uTjnRnl37l via @TimesBusiness pic.twitter.com/USZpXwzwsy |
| The BBC’s Kevin Peachey agrees that the FCA’s public criticism of a serving bank boss is pretty rare: | The BBC’s Kevin Peachey agrees that the FCA’s public criticism of a serving bank boss is pretty rare: |
| TSB's optimism problem - this kind of criticism of a bank boss from the regulator is very unusual #TSB https://t.co/Zixc9jefg4 | TSB's optimism problem - this kind of criticism of a bank boss from the regulator is very unusual #TSB https://t.co/Zixc9jefg4 |
| MoneySavingExpert have put together a few questions for Paul Pester to answer at today’s hearing: | MoneySavingExpert have put together a few questions for Paul Pester to answer at today’s hearing: |
| The Treasury committee’s first hearing into the TSB crisis, last month, was a very bruising experience. | The Treasury committee’s first hearing into the TSB crisis, last month, was a very bruising experience. |
| MPs lost patience with the bank as Paul Pester repeatedly argued that much of the IT migration had gone well (even if customers couldn’t actually access their accounts). | MPs lost patience with the bank as Paul Pester repeatedly argued that much of the IT migration had gone well (even if customers couldn’t actually access their accounts). |
| Nicky Morgan eventually let rip, telling Pester he was a “staggering example of a chief executive who seems unwilling to acknowledge the scale of the problem”. | Nicky Morgan eventually let rip, telling Pester he was a “staggering example of a chief executive who seems unwilling to acknowledge the scale of the problem”. |
| Here’s a clip from the May 2nd hearing: | Here’s a clip from the May 2nd hearing: |
| TSB is still suffering problems, more than six weeks after the ill-fated migration from its former owner Lloyds to its current owned Sabadell. | TSB is still suffering problems, more than six weeks after the ill-fated migration from its former owner Lloyds to its current owned Sabadell. |
| The bank’s service status page warns that some customers are still having issues logging into internet banking, or having difficulties making payments. Also, some Direct Debit payments weren’t taken for TSB credit card customers this month. | The bank’s service status page warns that some customers are still having issues logging into internet banking, or having difficulties making payments. Also, some Direct Debit payments weren’t taken for TSB credit card customers this month. |
| TSB also admits that some customers calling Telephone Banking are experiencing long wait times, and that its branches are busier than usual too. | TSB also admits that some customers calling Telephone Banking are experiencing long wait times, and that its branches are busier than usual too. |
| Nicky Morgan MP, the chair of the Treasury Committee, has piled more pressure on Paul Pester ahead of this afternoon’s interrogation. | Nicky Morgan MP, the chair of the Treasury Committee, has piled more pressure on Paul Pester ahead of this afternoon’s interrogation. |
| Morgan says she is “deeply concerned by TSB’s poor communications” over its IT problems. | Morgan says she is “deeply concerned by TSB’s poor communications” over its IT problems. |
| Last week, the Financial Conduct Authority told the Committee it is ‘dissatisfied’ with TSB’s communications with its customers. | Last week, the Financial Conduct Authority told the Committee it is ‘dissatisfied’ with TSB’s communications with its customers. |
| For example, FCA chief Andrew Bailey says that TSB claimed that “the vast majority” of customers could access their online account, when in reality only 50% could successfully log in the first time they tried. | For example, FCA chief Andrew Bailey says that TSB claimed that “the vast majority” of customers could access their online account, when in reality only 50% could successfully log in the first time they tried. |
| That’s one reason Bailey is accusing Pester of giving an “optimistic” view of the situation when he faced MPs last month, rather than a “more rounded view” of the problems suffered by customers. | That’s one reason Bailey is accusing Pester of giving an “optimistic” view of the situation when he faced MPs last month, rather than a “more rounded view” of the problems suffered by customers. |
| Morgan says this isn’t acceptable: | Morgan says this isn’t acceptable: |
| “The regulator does not make such criticisms lightly. I am deeply concerned by TSB’s poor communications about the scale and nature of the problems it has faced; by its response to customer fraud; and by the quality and accuracy of the oral and written evidence provided by Dr Pester to the Committee. | “The regulator does not make such criticisms lightly. I am deeply concerned by TSB’s poor communications about the scale and nature of the problems it has faced; by its response to customer fraud; and by the quality and accuracy of the oral and written evidence provided by Dr Pester to the Committee. |
| “The Committee will discuss Mr Bailey’s letter, and the ongoing problems faced by TSB customers, when it sees Dr Pester and other TSB Board members, as well as the FCA, on Wednesday.” | “The Committee will discuss Mr Bailey’s letter, and the ongoing problems faced by TSB customers, when it sees Dr Pester and other TSB Board members, as well as the FCA, on Wednesday.” |
| .@TheFCA has responded to the Committee's letter about the IT problems at TSB. @NickyMorgan01 has said she is "deeply concerned by TSB's poor communications" about its IT problems. Read the full story - including @TheFCA letter - here: https://t.co/VFRpkCpyNL pic.twitter.com/rvof0AXNfv | .@TheFCA has responded to the Committee's letter about the IT problems at TSB. @NickyMorgan01 has said she is "deeply concerned by TSB's poor communications" about its IT problems. Read the full story - including @TheFCA letter - here: https://t.co/VFRpkCpyNL pic.twitter.com/rvof0AXNfv |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| The beleaguered boss of UK bank TSB is being hauled back to parliament today to face fresh questioning over the IT meltdown that left millions locked out of their accounts. | The beleaguered boss of UK bank TSB is being hauled back to parliament today to face fresh questioning over the IT meltdown that left millions locked out of their accounts. |
| Paul Pester is in the firing line over his handling of the crisis, and can expect plenty of criticism and tough questions from MPs on the Treasury Committee. | Paul Pester is in the firing line over his handling of the crisis, and can expect plenty of criticism and tough questions from MPs on the Treasury Committee. |
| Last month, the committee accused Pester of being ‘extraordinary complacent’ over the botched migration to a new technology platform, so today’s session could intensify the pressure. | Last month, the committee accused Pester of being ‘extraordinary complacent’ over the botched migration to a new technology platform, so today’s session could intensify the pressure. |
| TSB’s IT crisis is one of the worst to have hit a bank ever - customers found they couldn’t log on via their computer or mobile phones, small businesses were unable to pay staff, and some householders found their mortgages had disappeared. | TSB’s IT crisis is one of the worst to have hit a bank ever - customers found they couldn’t log on via their computer or mobile phones, small businesses were unable to pay staff, and some householders found their mortgages had disappeared. |
| Cybercriminals have been taking advantage too, with reports that some TSB customers are falling victim to fraud. | Cybercriminals have been taking advantage too, with reports that some TSB customers are falling victim to fraud. |
| Overnight, the Financial Conduct Authority - the City’s watchdog - has confirmed it is investigating the issue. | Overnight, the Financial Conduct Authority - the City’s watchdog - has confirmed it is investigating the issue. |
| Andrew Bailey, chief executive of the FCA, says: | Andrew Bailey, chief executive of the FCA, says: |
| “We do not normally make this information public, but, given the level of public interest, I want to be clear that we will be conducting this work.” | “We do not normally make this information public, but, given the level of public interest, I want to be clear that we will be conducting this work.” |
| The FCA has also put Pester in the firing line, accusing him of failing to come clean about TSB’s problems. | The FCA has also put Pester in the firing line, accusing him of failing to come clean about TSB’s problems. |
| My colleague Angela Monaghan explains: | My colleague Angela Monaghan explains: |
| The City regulator has launched a stinging attack on the chief executive of TSB over the bank’s failure to be open and transparent with customers when an IT upgrade went badly wrong, locking as many as 1.9 million customers out of their accounts. | The City regulator has launched a stinging attack on the chief executive of TSB over the bank’s failure to be open and transparent with customers when an IT upgrade went badly wrong, locking as many as 1.9 million customers out of their accounts. |
| The Financial Conduct Authority accused Paul Pester of “portraying an optimistic view” of services after the botched operation in April that is still causing disruption for customers more than a month on. | The Financial Conduct Authority accused Paul Pester of “portraying an optimistic view” of services after the botched operation in April that is still causing disruption for customers more than a month on. |
| “The FCA has been dissatisfied with TSB’s communications with its customers and we have had concerns that TSB was not being open and transparent about the issues experienced,” Andrew Bailey, the FCA’s chief executive, said in a letter to the Commons Treasury committee. | “The FCA has been dissatisfied with TSB’s communications with its customers and we have had concerns that TSB was not being open and transparent about the issues experienced,” Andrew Bailey, the FCA’s chief executive, said in a letter to the Commons Treasury committee. |
| In particular, the FCA think that Pester could have given MPs more information about the crisis when he initially testified on May 2nd. They believe he may have had useful information from the tech experts at IBM who have been trying to fix the problems. | In particular, the FCA think that Pester could have given MPs more information about the crisis when he initially testified on May 2nd. They believe he may have had useful information from the tech experts at IBM who have been trying to fix the problems. |
| The session kicks off at 2.30pm, when the Treasury committee will hear from the FCA. | The session kicks off at 2.30pm, when the Treasury committee will hear from the FCA. |
| They’ll then question Pester, along with TSB chairman Richard Meddings and Miguel Montes of parent company Sabadell Group. | They’ll then question Pester, along with TSB chairman Richard Meddings and Miguel Montes of parent company Sabadell Group. |
| Also coming up today | Also coming up today |
| More European stock markets are rising in early trading, after America’s tech-focused Nasdaq index hit a record high last night. | More European stock markets are rising in early trading, after America’s tech-focused Nasdaq index hit a record high last night. |
| Jasper Lawler of London Capital Group explains: | Jasper Lawler of London Capital Group explains: |
| Tech stock were once again responsible for any excitement on Wall Street. Netflix and Amazon jumping 1.9% and 1.1% respectively boosted the Nasdaq to close at a record high at 7637. | Tech stock were once again responsible for any excitement on Wall Street. Netflix and Amazon jumping 1.9% and 1.1% respectively boosted the Nasdaq to close at a record high at 7637. |
| This is the second straight session where tech stocks have been under the spotlight and we are seeing a lot of positive news surrounding the sector, Microsoft buying GitHub, Apple pushing new software and Amazon sales flying, when everything else in the market is looking a little drab. | This is the second straight session where tech stocks have been under the spotlight and we are seeing a lot of positive news surrounding the sector, Microsoft buying GitHub, Apple pushing new software and Amazon sales flying, when everything else in the market is looking a little drab. |
| On the economics front, Australia’s growth rate has picked thanks to booming demand for commodities: | On the economics front, Australia’s growth rate has picked thanks to booming demand for commodities: |
| The agenda: | The agenda: |
| 2.30pm BST: FCA testify to the Treasury committee on the TSB IT crisis | 2.30pm BST: FCA testify to the Treasury committee on the TSB IT crisis |
| 3.30pm BST: TSB bosses testify to the Treasury committee | 3.30pm BST: TSB bosses testify to the Treasury committee |
| We have two panels today on the service disruption at TSB. First up is @TheFCA. We'll hear from Andrew Bailey, John Sutherland and Sheree Howard. Watch it live from 2.30pm here: https://t.co/0mYzbGfZMT pic.twitter.com/clnYRsQ0Zg | We have two panels today on the service disruption at TSB. First up is @TheFCA. We'll hear from Andrew Bailey, John Sutherland and Sheree Howard. Watch it live from 2.30pm here: https://t.co/0mYzbGfZMT pic.twitter.com/clnYRsQ0Zg |
| Our second panel today on the service disruption at TSB is with Paul Pester, chief executive of TSB, Richard Meddings, chairman of TSB, and Miquel Montes, chief operating office of Sabadell. Watch it live from 3.30pm here: https://t.co/0mYzbGfZMT pic.twitter.com/QlCNUUst6u | Our second panel today on the service disruption at TSB is with Paul Pester, chief executive of TSB, Richard Meddings, chairman of TSB, and Miquel Montes, chief operating office of Sabadell. Watch it live from 3.30pm here: https://t.co/0mYzbGfZMT pic.twitter.com/QlCNUUst6u |