LONDON (Reuters) – The chairman of TSB stated on Thursday the financial institution’s chief govt, Paul Pester, had the total help of the board, after Pester got here underneath assault from lawmakers over his dealing with of an IT disaster, casting doubt on his place.
Parliament’s Treasury Committee stated earlier on Thursday it had “misplaced confidence” in Pester and questioned whether or not he ought to stay in his publish. The IT outage left 1000’s of consumers with out entry to accounts and unable to make very important funds.
TSB Chairman Richard Meddings’ response recommended Pester would stay on the financial institution for now, noting Pester’s progress in resolving the IT points.
“This progress has been achieved underneath the management of Paul Pester, who continues to have the total help of the TSB Board,” Meddings stated in an announcement on Thursday night.
The politicians can not straight affect whether or not Pester is sacked. That call rests with the financial institution’s board.
In letters to Meddings, the Monetary Conduct Authority and the Prudential Regulation Authority, the chair of the Treasury Committee, Nicky Morgan, stated the committee was expressing no opinion on who was chargeable for the IT disaster however on Pester’s response afterwards.
“Because the IT issues at TSB started, its public communications have usually been complacent and deceptive. This tone has been set from the highest,” Morgan stated in an announcement.
In her letter to Meddings, Morgan listed situations the place the TSB boss had both omitted info or made statements the committee deemed inaccurate, and didn’t take alternatives to appropriate his statements.
“Whether or not deliberately or not, he has not been straight with the committee and … TSB’s clients,” she stated.
Treasury Committee members referred to as such public criticism of a serving financial institution CEO “unprecedented”.
The PRA and FCA declined to remark.
“I’ve by no means seen such unanimity within the Committee. Every and everybody got here to the identical conclusion,” stated Labour social gathering lawmaker and committee member John Mann on Twitter.
TSB’s Spanish proprietor, Sabadell, stated earlier on Thursday the disaster had to this point value about 70 million kilos ($94 million), primarily from a waiver of overdraft charges and compensation for instances of alleged fraud linked to the IT issues.
Sabadell declined to touch upon the lawmakers’ criticisms of Pester.
In his second look in entrance of the committee on Wednesday, Pester was compelled by one lawmaker to confess he had been unaware of great issues with the financial institution’s fraud helpline throughout his first look, the place he stated most points had been resolved.
Extra reporting by Kirstin Ridley, modifying by Edmund Blair, Larry King