Bank of Scotland 'guilty of serious misconduct'

The Bank of Scotland was guilty of "very serious misconduct" which contributed to the taxpayer bailout of its parent company HBOS, the City watchdog has found.

The FSA criticised the "aggressive deal structures" increasingly pursued by the bank and said it failed to reduce its risky behaviour despite expectations of a downturn in the markets.

Although this behaviour contributed to the taxpayer bailout of HBOS - and the eventual bailout of Lloyds, which bought HBOS - there will be no punishment as the FSA seeks to protect taxpayers' money.

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BOS guilty of 'serious misconduct'

The Bank of Scotland was guilty of "very serious misconduct" that contributed to the taxpayers bailing out its parent company HBOS, according to the City watchdog the Financial Services Authority.