The Prudential Regulation Authority has been asked by MPs to investigate whether Lloyds Banking Group bosses, including António Horta-Osório, its chief executive, breached corporate governance rules by allegedly “covering up” the HBOS Reading fraud. The all-party parliamentary group on fair business banking said that Lloyds executives had “withheld” a critical whistleblower’s report from the bank’s board for more than four years, which it claimed was in breach of a Bank of England stipulation that management must be “open and transparent” with non-executives. In a letter to Mark Carney, governor of the Bank of England, the group asked “what actions you are taking to make sure that appropriate corporate governance rules have been followed”. Kevin Hollinrake, 55, co-chairman of the parliamentary group, told Mr Carney, 54,
MPs have asked the Prudential Regulation Authority ( PRA ) to launch an investigation into whether Lloyds Banking Group executives covered up the extent of a business - lending scam at HBOS , which resulted in six convictions in 2014 . The all - party parliamentary group on fair business banking wrote to Bank of England Governor Mark Carney asking which actions were being taken to ensure corporate governance rules were followed after Lloyds bosses apparently “ withheld ” from the public a 2013 report written by a risk officer detailing the extent of fraudulent business lending within HBOS .