Financial Services Authority is due to report on multimillion-pound loans agreed by HBOS exec to the property and housebuilding sector

An eight-month investigation by the Financial Services Authority into HBOS has focused on the role of Peter Cummings, its controversial former head of corporate lending, responsible for billions of pounds of lending to the property and housebuilding sector.

According to the Sunday Times, the FSA, which is due to report in a matter of weeks, wants to establish whether all the paperwork was completed when loans to housebuilders and property firms were were agreed.

Cummings left HBOS last January following the merger of HBOS with Lloyds TSB.

Cummings oversaw multimillion-pound investments by the bank into Crest Nicholson, Countryside and McCarthy & Stone among many others, along with numerous loans to the sector.

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