FSA to Probe UK Licence of 'Sham Bank'

Daily Mail (London), May 17, 2011 | Go to article overview

FSA to Probe UK Licence of 'Sham Bank'


Byline: Rob Davies

CITY regulators will quiz a senior whistleblower from Bank of Ireland over claims that its UK operation, which manages billions of pounds via the Post Office savings accounts, is a 'sham' bank.

The claims emerged after the Daily Mail published a letter from Lord Ahmed of Rotherham to Chancellor George Osborne, calling for an urgent inquiry into the independence of Bank of Ireland UK. The Labour peer quoted a 'senior' whistleblower, who claims the bank's UK division is controlled from Ireland, casting into question the Financial Services Authority's decision to grant a British banking licence.

The unnamed executive, who says he was moved to air his grievances after the bank tried to silence him, told the Mail that he was due to meet with the FSA to discuss the claims.

The question-and-answer session is likely to take place in the next few weeks, ahead of a routine visit by the FSA to Bank of Ireland UK in June, at which the issue of independence is expected to feature heavily. …

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FSA to Probe UK Licence of 'Sham Bank'
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