MPs on the Treasury Committee have ‘lost confidence’ in Paul Pester, TSB’s chief executive, following the bank’s computer meltdown.
Nicky Morgan MP, chair of the Committee, has written to Richard Meddings, chair of TSB, to voice the committee’s concerns about Dr Pester’s continuing as the bank’s chief executive, saying the TSB board should give “serious consideration” as to whether continuing in his role was “sustainable”
Ms Morgan says that the committee is concerned that if Dr Pester continues in his position, “this could damage trust not only in TSB, but in the retail banking sector as a whole”.
Mrs Morgan adds: “Since the IT problems at TSB began, its public communications have often been complacent and misleading. This tone has been set from the top – by Paul Pester – and whether intentionally or not, he has not been straight with the Committee and TSB customers.
“Dr Pester’s statements that ‘everything is running smoothly for the vast majority of our […] customers’ and that ‘there will be no barriers’ to customers switching accounts, and his denial that there were problems on TSB’s fraud reporting line, are all examples of this.”
Earlier this week, the Financial Conduct Authority launched an investigation into TSB, saying that Dr Pester had offered an “optimistic view” of the scale of the bank’s problems. Dr Pester apologised to the Committee earlier this week for the extensive problems experienced by customers.