Regulator fines former Bradford & Bingley FD again

THE former finance director of Bradford & Bingley has been fined for failing to alert his board to a serious worsening of the bank’s financial position during the financial crisis.

According to a report in The Guardian, the Financial Reporting Council (FRC) reprimanded Chris Willford and fined him £13,000, reduced from £20,000 because he settled early. The FRC’s fine follows a £30,000 penalty imposed by the Financial Conduct Authority (FCA) in December over the same matter. Click here to read the story.

In May 2008, Mr Willford received information that suggested that Bradford & Bingley’s financial outlook might be weaker than expected. As Bradford & Bingley was preparing to raise capital through a rights issue, this should have immediately been raised with B&B’s board and investigated to ensure that the information provided to shareholders about the rights issue on May 19 was correct.  Willford failed to tell his fellow board members in time for the rights issue circular to shareholders to describe the bank’s worsening finances.

In a statement last year the FRC said it did not find that Willford’s conduct caused the failure of the rights issue, or Bradford & Bingley’s subsequent nationalisation.