Ex-HBOS CEO Hornby: too much info may have obscured risks
LONDON Dec 3 (Reuters) - Former HBOS Chief Executive Andy Hornby said the bank's board may have had too much information from each division to fully understand the true risks before its near collapse in 2008.
Hornby, who was HBOS CEO from August 2006 until it was bought by Lloyds three years ago after a government bailout, on Monday also admitted HBOS's corporate division had too much concentration in commercial real estate and failed to realise the threat of its over-reliance on wholesale funding.
In written evidence to UK lawmakers before appearing before them later on Monday, Hornby said HBOS's problem wasn't a lack of detail provided to the board about risk but maybe too much.
"With hindsight, at times it may have been the case that the sheer volume of information supplied by every division right across operational risk, credit risk and regulatory risk may at times have made it harder for the board to fully understand the potential issues facing the business," he said.