TSB: Boss Paul Pester Did Not Mislead MPs Over Extent of Computer Issues

Photo by Elliott Brown from Flickr

TSB has denied that Paul Pester, its chief executive, misled MPs regarding the extent of a crippling computer meltdown that was experienced by the bank, following the reports that he had seen evidence that was contradicting his statements to a committee of the parliament.

The bank called in IBM, an IT giant, after its attempts to migrate to new computer systems in April, went horribly wrong, leaving thousands of customers without access to their bank accounts.

According to the Sunday Times, a report was released by IBM over the issues carried out soon after it was called in. It says that problems were spread via “custom and packaged applications, middleware services and the network.”

In May, Pester informed the Treasury Select Committee that the problems were in the “middleware.” He was referring to the software that glues together the core system and the customer-facing applications.

However, the bank said that the report of the IBM was given to the Financial Conduct Authority (FCA) even before it was given to the board of the TSB.

A spokesperson from TSB stated: “The IBM document contained a preliminary work plan with very early hypotheses based on observations to date, that were produced after only three days of engagement with TSB.”

He added: “To present this document as a clear view of what went wrong wouldn’t be a fair reflection. Similarly, it isn’t a fair reflection of what actions may or may not subsequently have been taken.”

Citing commercial confidentiality, TSB turned down requests to share the said report.

Last week, Andrew Bailey, the chief executive of the FCA, slammed Pester for giving an overly “rosy” view of the issues during his committee appearance last May. Also, last week, the members of the committee urged Pester to resign from his post, saying that they had already “lost confidence” in him.

However, the board of the TSB supported Pester, while some experts on corporate governance, including those who are from the Institute of Directors, slammed the MPs for meddling in the affairs of a private company.