Ex-Bradford & Bingley CFO fined for 2008 cash call failings
LONDON Dec 12 (Reuters) - The former finance director of Bradford & Bingley (B&B), a UK lender, has been fined 30,000 pounds ($49,000) for failings related to a 2008 cash call, as the regulator forces board members to take responsibility for their actions.
The Financial Conduct Authority (FCA) said on Thursday Christopher Willford had failed to alert the board to potential risks, including details about profits, mortgage arrears and re-possessions, at the height of the credit crisis five years ago.
The fine, described as symbolic by lawyers, is an attempt by the regulator to bring individuals to book after the financial crisis left taxpayers nursing eyewatering bills to prop up the financial industry.
"Willford failed to identify and investigate potentially material risks, or alert the board, at a crucial time for the firm," said Tracey McDermott, head of the FCA's financial crime and enforcement division.
"His conduct fell short of the FCA's standards - senior managers should expect the FCA to take action if they fail to show due skill, care and diligence."
Bradford & Bingley, which specialised in buy-to-let mortgages, tried to raise 400 million pounds from a rights issue in 2008 but investors balked and the underwriters were left with much of the stock. The bank was subsequently nationalised.
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