News Column

Business: Analysis: Blackwell in the soup already over Lloyds's lack of ethics

August 3, 2014

Business Leader

Not a good start for Lord Blackwell, chairman of Lloyds Banking Group. Just three months into his role, he has had to send a grovelling letter to Bank of England governor Mark Carney after the bailed-out bank's traders were found to have manipulated interest rates to reduce fees paid to the central bank for a crucial lifeline during the financial crisis.

The sums involved were tiny by bankers' standards - pounds 8m - but the impact is deeper. It sends a signal about the lack of ethics of financial professionals, as does the latest flurry of provisions to cover PPI mis-selling.

This mis-selling scandal was already the costliest in history before the pounds 900m and pounds 600m set aside by Barclays and Lloyds last week. It has now cost pounds 23bn. So, yet another bad week for the banks, whose attempts to restore their reputations are only going one way - backwards.

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Source: Observer (UK)

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