Credit Crisis
He was questioned about the banking crisis during a session of the Treasury Select Committee of the House of Commons on February 12, 2009. One of the key issues concerned Lloyds takeover of HBOS in 2008, and the amount of due diligence carried out before the acquisition. He said that a company would always like to do more due diligence on another company, but there are limits on how much is possible prior to an actual acquisition. Losses were a little higher than the £10 billion expected owing to write-offs of property loans due to falling property prices and the lack of demand.
(Lloyds' Chairman Sir Victor Blank confirmed in an August 2009 interview with the BBC's Robert Peston that losses had been "at the worst end of expectations", but what had surprised the Lloyds board was the speed at which the losses happened, due to the unexpectedly sharp contraction of the world economy in the last quarter of 2008 and the early part of 2009.)
Criticisms have been voiced about his tax status. Sources said that Daniels had legitimately kept his non-dom status when he joined the board of Lloyds TSB in 2001.
He did not receive an expected bonus of £2.3 million in 2010, following the announcement of a further £6.3 billion loss by Lloyds TSB under his leadership.
In February 2012, he was forced to surrender up to £700,000 of a £1.45m bonus, after the mis-selling of PPI credit insurance to customers.
Read more about this topic: Eric Daniels
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