The Parliamentary Commission on Banking Standards has published its report into the failures that led to HBOS’s demise. Among other failures, the report points at weaknesses in HBOS’s federal model of internal control, where the assessment of exposure to future credit risks was dominated by the executives of the individual divisions. The report also criticises the role of the regulator, which should have engaged its senior leadership in HBOS’s supervision and considered the fundamental risks of the bank. The report recommends that the regulator consider barring the former leaders of HBOS from undertaking any future role in the financial sector. Only one so far has faced regulatory sanction, while the rest have only seen their Approved Person status lapse. The Commission on Banking Standards will propose, in its final report, measures to make directors of failed financial institutions accountable. (Source: Failure of HBOS Linked to “Colossal Failure of Senior Management and the Board” )