MPs “lose confidence” in TSB chief

TSB Bank branding, High Street, Lincoln, Lincolnshire, UK - 5th April 2018

MPs have “lost confidence” in the TSB chief executive, Paul Pester.

Following the lender’s IT meltdown, the Treasury select committee told the TSB board to give “serious consideration as to whether his position was sustainable”.

Last month, a failed computer switchover led to thousands of customers not being able to access their bank accounts. The bank admitted that 1,300 customers had money stolen from accounts during the meltdown.

Richard Meddings, TSB chairman, said Pester had full support from the board.

“We recognise that we still have areas where we need to improve performance for our customers and we do not underestimate these remaining issues,” he told Nicky Morgan, who chairs the Treasury committee.

Meddings’ support came following a letter from Morgan, doubting the ability of Pester.

The letter read: “The committee considers that the TSB board should give serious consideration as to whether Dr Pester’s position as chief executive of TSB is sustainable.

“The committee has lost confidence in his ability to provide a full and frank assessment of the problems at TSB, and to deal with them in the best interests of its customers.

“It is concerned that, if he continues in his position, this could damage trust not only in TSB, but in the retail banking sector as a whole. I ask that the board consider the committee’s view as a matter of urgency.”

The criticism from MPs comes after the Financial Conduct Authority said this week that it plans to investigate the group. 

“We do not normally make this information [the investigation] public, but, given the level of public interest, I want to be clear that we will be conducting this work.” The FCA has powers to impose unlimited fines,” said FCA chief executive Andrew Bailey on Wednesday.