Regulators slap Lloyds and RBS with £90m fines
Regulators in the UK and US on Wednesday fined Lloyds Banking Group and Royal Bank of Scotland a combined £90 million as another round of past misdeeds came back to haunt Britain’s state-backed banks, according to the Financial Times.
Lloyds was fined a record £28 million for “serious failings” in its sales practices, the biggest ever UK regulatory penalty for a retail banking misdemeanour. The case involved one desperate Lloyds salesman to mis-selling policies to himself, his wife and a colleague to avoid automatic demotion, according to The Independent.
According to the Financial Conduct Authority, neither Halifax, Lloyds TSB or Bank of Scotland - all owned by Lloyds - kept an eye out for bad sales at the end of a quarter. Instead, 229 Lloyds TSB advisers got a bonus when all of their sales were classified as "advice fails" in one month.
RBS separately will pay the US authorities $100 million (£62m) to settle accusations it breached US sanctions through dealings with clients in Iran, Sudan, Burma and Cuba. The bailed-out bank admitted involvement in more than 3,500 transactions valued at $523 million, and said it “acknowledges and deeply regrets these failings”, according to City A.M.