Dou­ble trou­ble on way for TSB boss Pester

The Sunday Telegraph - Money & Business - - Front page - By Iain Withers

TSB’S un­der-fire chief Paul Pester is fac­ing fur­ther pres­sure on two fronts as he pre­pares for an­other grilling by MPS and an im­mi­nent City watch­dog in­ves­ti­ga­tion and likely fine.

The Trea­sury se­lect com­mit­tee is haul­ing Mr Pester back into Par­lia­ment on Wed­nes­day just weeks af­ter chair­man Nicky Mor­gan ac­cused him of “stag­ger­ing” com­pla­cency.

The Fi­nan­cial Con­duct Author­ity (FCA) is also pre­par­ing to launch an in­ves­ti­ga­tion into TSB. An­drew Bai­ley, who heads up the FCA, told The Sun­day

Telegraph it was “some­thing we are work­ing on”. Mr Bai­ley is also set to give ev­i­dence to the com­mit­tee.

MPS will press Mr Pester on why IT prob­lems are con­tin­u­ing over a month af­ter the bank’s botched IT sys­tem switch in April. They are also set to ask about claims TSB cus­tomers have been de­frauded as a re­sult of the IT faults, and de­mand an up­date on ef­forts to com­pen­sate those left out of pocket.

Ques­tion­ing is also likely to fo­cus on Mr Pester’s own fu­ture amid grow­ing spec­u­la­tion he could be ousted. “If he can’t sort it out they should get some­one in who can. The share­hold­ers [par­ent com­pany Sabadell] must be think­ing that,” said John Mann MP, a mem­ber of the Trea­sury com­mit­tee.

TSB is still re­port­ing other prob­lems on its ser­vice sta­tus page, such as mort­gages not be­ing view­able on­line and some dig­i­tal pay­ments throw­ing up er­ror mes­sages.

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