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Former HBOS head fined record £500,000

Former HBOS head fined record £500,000

Category: Banking

Updated: 14/12/2012
First Published: 13/09/2012

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Former HBOS senior executive Peter Cummings has been fined a record £500,000 by the Financial Services Authority (FSA) for his role in the failure of the bank during the financial crisis.

Mr Cummings has also been banned for life from holding any senior position in a UK bank, building society, investment or insurance firm.

The fine is the highest imposed by the FSA on a senior executive for management failings.

Mr Cummings was an executive director of HBOS plc and chief executive of its corporate division between January 2006 and December 2008.

"Despite being aware of the weaknesses in his division and growing problems in the economy, Cummings presided over a culture of aggressive growth without the controls in place to manage the risks associated with that strategy. Instead of reacting to the worsening environment, he raised his targets as other banks pulled out of the same markets," said FSA director of enforcement and financial crime, Tracy McDermott.

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