Former HBOS employees charged in £35m fraud investigation

Two former employees of HBOS have been arrested along with a string of other suspects following an investigation into loans offered by the bank prior to its collapse.

The allegations involve "kick-backs" being paid to bank managers in exchange for lucrative administration contracts given to a small group of external consultants. Two former senior managers in the Reading and London offices of HBOS were charged by police on Tuesday night with conspiracy to corrupt, following a two-year investigation codenamed 'Operation Hornet', according to a report in the Telegraph. The men were said to be given numerous high-value gifts by a financial consultancy in exchange for appointing the firm to administer business loans worth £35m which were granted to comp...