The post you are reporting:
Our right winger`s Bankers continue with their ``nasty`` habits...
Lloyds Banking Group fined record £28m in new mis-selling scandal
Pressure on staff to get 'a grand in your hand' or face demotion led to bonus-induced selling frenzy, FCA says
Up to 700,000 bank customers who bought share ISAs and illness or income protection products could be affected. Photograph: Andy Rain/EPA
Former and current directors of Lloyds Banking Group could face having their bonuses clawed back, after the bailed-out bank was hit with a record £28m fine for putting staff under intense pressure to sell products customers did not want - or face demotion and pay cuts.
The 33% taxpayer-owned bank now faces a bill of at least £100m to compensate up to 700,000 customers of Lloyds, Halifax and Bank of Scotland who bought £2bn-worth of products such as stocks-and-shares Isas and illness or income insurance cover, between January 2010 and March 2012 in a bonus-induced selling frenzy by staff. The scale of the fine - a record for the Financial Conduct Authority in such cases - and the potential bill for redress could result in bonuses for past and current directors being clawed back, including the chief executive, António Horta-Osório, who was at the helm for 12 months before the bonus schemes were stopped.
Among the revelations are:
• A sales adviser sold financial protection products to himself, his wife and a colleague in an attempt to avoid being demoted.
• A "grand in your hand" scheme for advisers at Halifax and Bank of Scotland made one-off payments of £1,000 for hitting sales targets.
• A "champagne bonus" was awarded to Lloyds TSB staff, worth 35% of their monthly salary, for meeting sales targets.