LONDON Jan 31 The bosses of HSBC,
Barclays and Lloyds have been called to
testify before UK lawmakers next week as an inquiry into
standards in banking intensifies after a string of scandals.
Britain's Parliamentary Commission on Banking Standards
(PCBS) has this month switched its focus to standards and
culture after spending most of the past three months assessing
It is likely to grill executives on mis-selling, pay and
what is being done to improve risk management and culture that
have been shown to be flawed.
Lloyds CEO Antonio Horta-Osorio and Chairman Win Bischoff
will appear together before the panel on Monday, followed by new
Barclays CEO Antony Jenkins and Chairman David Walker on
Tuesday. HSBC CEO Stuart Gulliver and Chairman Douglas Flint
will appear on Wednesday.
All three banks have had problems in the past year.
A $450 million fine for Barclays in June for rigging Libor
interest rates unearthed long-standing concerns at the regulator
about its culture, and HSBC was fined a record $1.9 billion by
U.S. authorities for weak anti-money laundering controls. Both
banks have faced criticism they are too big and complex.
Lloyds has been slammed for too aggressively selling retail
products, which has left it with a far bigger bill than rivals
for compensating customers mis-sold insurance products.
All banks have been criticised for their PPI (payment
protection insurance) sales policies - the industry may end up
paying more than 20 billion pounds in compensation - and banks
may have to pay out billions more after the UK regulator on
Thursday found they had mis-sold complex interest-rate hedging
products to small businesses.
Mark Carney, the future governor of the Bank of England, is
also likely to face questions on his views on banking standards
when he appears before UK politicians next Thursday.