Lloyds in sights of Serious Fraud Office over alleged 'collusion'
Lloyds could face a Serious Fraud Office probe into accusations that it pushed companies into administration for its own gain.
The SFO yesterday said it was giving ‘active consideration’ to opening an investigation following allegations made by MPs about the way their constituents were treated by the lender.
Shares in Lloyds were hit by the comments, and fell just over 2 per cent to close at 72.71p.
Possible investigation: Lloyds could face a Serious Fraud Office probe into accusations that it pushed companies into administration for its own gain
The accusation centres on Lloyds’ relationship with administration firm Alder King.
It was said that a senior Alder King partner was seconded on to the Lloyds team that decided whether to push firms into administration – at the same time as his firm was set to profit from their collapse.
The claims are similar to ones levelled against the now-defunct restructuring unit of RBS, which faced an investigation by the Financial Conduct Authority.
That probe is expected to conclude by the end of the year – and its result could lead the SFO to intervene as well.
Labour MPs Jo Stevens and Huw Irranca-Davies both said their constituents had been victims of the bank’s behaviour. Stevens, MP for Cardiff Central, said the bank and its administration group ‘colluded’ to push ‘small businesses to the wall as the bank sought to clean up its balance sheet after the financial crisis’.
Lloyds has strenuously denied the allegations.
A spokesman said the accusations raised by one of the constituents were ‘baseless’.
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