Lloyds Bank payout to author of HBOS Reading scandal report

Lloyds Banking Group has agreed to pay compensation to the author of an explosive leaked report into the HBOS Reading fraud scandal.

Sally Masterton, who wrote the Project Lord Turnbull report leaked online in May, agreed a settlement with the high street bank to recognise the “distress and inconvenience” caused to her by the saga.

The former Lloyds senior risk officer found herself in the spotlight after an unredacted version of the report was published online by campaigners and included her mobile phone number.

The Project Lord Turnbull report, given to police and regulators in 2014, claimed HBOS had covered up a fraud at its Reading branch ahead of its Lloyds rescue in the midst of the financial crisis.

Six people went to prison over the case.

Dame Linda Dobbs is investigating the claims with Masterton’s assistance after MPs took an interest in the issue.

Masterton left the bank after she published the report and later settled a unfair constructive dismissal claim with the bank.