Page 283 - Bank Case Studies

Tuesday 15 May –

It emerged that TSB had turned down an offer of help
from Lloyds Banking Group, its former owner, in the

early stages of the IT meltdown. Lloyds contacted TSB

on the morning of 23 April but TSB declined the offer,

despite the fact its customer information was being

transferred from a Lloyds system to one designed by

Sabadell. (32)

Sunday 20 May –

Some TSB customers were still unable to make
payments or access key accounts.

Wednesday 6 June –

Pester received a stinging rebuke from one of the City’s
top regulators. Andrew Bailey, the chief executive of

the Financial Conduct Authority, accuses Pester of

“portraying an optimistic view” of services after the IT

meltdown and says the bank failed to be “open and

transparent” about the scale of the problems. The FCA

is investigating the migration jointly with the Prudential

Regulation Authority. (32)

The problems of 20 April 2018 struck as TSB tried to

complete the final stage of its extrication from the rental of

its IT system from Lloyds. It failed. Five days later its

customers were still facing chaos and there was the ever-

present threat of the FCA, which has the power to fine banks
for system failures, taking action against TSB in the form of a

fine.