LONDON, April 7 Lloyds Banking Group
will set aside about 100 million pounds ($124.51 million) to
compensate customers who were victims of a fraud for which six
people were jailed earlier this year, it said on Friday.
Britain's biggest mortgage lender has been under pressure to
compensate victims of the fraud, who allege it reacted too
slowly to their complaints.
The bank said it will provide interim payments on a
case-by-case basis to assist victims in financial difficulty and
appoint a senior independent lawyer to consider whether the bank
properly investigated at the time.
The fraud involved two former bankers at HBOS, once
Britain's biggest mortgage lender, which was rescued in a
state-engineered takeover by Lloyds in 2008. They helped siphon
off money from struggling businesses which were HBOS clients.
Britain's Financial Conduct Authority separately said it was
resuming its investigation of the case, which had been placed on
hold in 2013 pending the outcome of the police's own probe.
($1 = 0.8031 pounds)
(Reporting By Andrew MacAskill and Lawrence White, Editing by