Regulators have decided not to take any further action against former managers of HBOS following a six year probe.
Once the UK’s biggest mortgage lender HBOS, which operated as Halifax and Bank of Scotland, went bankrupt in 2008 amid allegations of fraud and excessive risk taking.
It was bailed out by fellow banking heavyweight Lloyds and which in turn led to tax payers bail out to the tune of £20bn.
But despite having previously blamed the bank’s board for its failure the Financial Conduct Authority (FCA) and the Prudential Regulation Authority said on Friday that “no enforcement action should be taken”.
The Authorities’ joint investigations spanned six years and saw over two million documents inspected.
A related police investigation into fraud at the HBOS Reading branch led to the conviction and jailing of six people.
A statement from the FCA read: “In line with standard practice, the Authorities’ independent decision-makers reviewed the matters under investigation and have each determined that no enforcement action should be taken against these former HBOS senior managers.
“These investigations have therefore been closed.”
