Singled out

12 September 2012 By George Hay Follow @gfhay

The FSA has banned the former head of the collapsed UK bank’s corporate arm for life and given him a 500,000 pound fine. The regulator has also found HBOS’s collapse was caused by fools, not knaves. As such, Peter Cummings may well wonder why he is the only fall guy.

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The Financial Services Authority has fined the former head of the corporate arm of HBOS, Peter Cummings, 500,000 pounds and banned him from holding any senior position in a UK financial firm.

The FSA’s fine, the highest ever imposed on a senior executive for management failings, relates to the period between January 2006 and December 2008. The UK regulator ruled that Cummings failed to exercise due skill, care and diligence by pursuing an aggressive strategy within the Corporate Division without suitable risk controls in place.

The FSA also found that between April and December 2008 Cummings failed to ensure that his division properly managed high-value transactions showing signs of stress.

In a statement, Cummings said he rejected the FSA’s ruling in its entirety. He said the decision had been arrived at through “a fundamentally flawed, one-sided and oppressive process”.

Cummings added that he had decided not to dispute the matter due to the enormous potential costs involved and the further strain on him and his family.

Context News

The Financial Services Authority has fined the former head of the corporate arm of HBOS, Peter Cummings, 500,000 pounds and banned him from holding any senior position in a UK financial firm.

The FSA also found that between April and December 2008 Cummings failed to ensure that his division properly managed high-value transactions showing signs of stress.

In a statement, Cummings said he rejected the FSA’s ruling in its entirety. He said the decision had been arrived at through “a fundamentally flawed, one-sided and oppressive process”.

Cummings added that he had decided not to dispute the matter due to the enormous potential costs involved and the further strain on him and his family.

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