Lloyds strip bankers of bonuses

 

Lloyds is to strip five current and former senior bankers of more than £1 million in bonuses over their role in the mis-selling of payment protection insurance (PPI), the Daily Telegraph reported today.

The bank is taking back the bonuses over the scandal that cost the part UK government-owned bank £3.2 billion last year, the newspaper said.

The bonus withdrawal will be the first time a British bank has exercised a "clawback" option on executive pay packages since the financial crisis, it added.

PPI was often sold alongside loans to cover repayments if borrowers fell ill or lost their jobs.

The product was labelled as worthless insurance for many customers by a consumer group in 2008, which followed compensation claims by buyers.

In April last year, the industry lost a case in the High Court to stop customers demanding compensation. Lloyds announced weeks after the decision its intention to set aside £3.2 billion for likely payouts.

Lloyds could not be reached for immediate comment.

Reuters