HBOS loan chief set to leave with one-year payoff
Peter Cummings who was the man in charge of the HBOS corporate loan book is currently working on an exit route for himself which will see him take away around a year salary as compensation for loss of office. This has caused outrage in the city where Cummings is seen as one of the main reasons why HBOS is in its current situation.
While it would be unfair to blame Peter Cummings for all of the shortfalls of HBOS there is no doubt that his £100 billion lending spree contained some rather dubious and risky transactions which have since "come home to roost". However, Cummings is currently organising his exit from the enlarged Lloyds TSB group and due to contractual obligations is likely to receive the full amount.
This proposed payoff seems to go against everything which a government stands for at the moment and is sure to cause some concern in official circles. The recent £8 billion write-off is primarily because of the quality of some of Peter Cummings business dealings on behalf of HBOS although the current economic climate has not helped any. It will be interesting to see the press comment when details of the payoff do emerge and how the government react.
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