HBOS fraudster probe

LLOYDS Bank has appointed an academic to spearhead an investigation into whether it should compensate customers who were victims of fraud committed by former HBOS staff.

Business expert Professor Russel Griggs was chosen for the role because of his knowledge of small- and medium-sized firms.

The bank, which now owns HBOS, pledged last month to pay compensation once it had assessed all customers who may have been affected by criminal activities linked to the former HBOS office in Reading.

A group of corrupt financiers were jailed last month for carrying out a £245m loans scam and spending the profits on prostitutes and luxury holidays.