MPs and Campaigners Seek Judge-Led Inquiry into Alleged Hidden Credit Lines in UK Banking Scandal

A group of MPs, business owners, and campaigners, including City veteran Ian Tyler, are calling for a judge-led inquiry into allegations that the most pernicious aspect of a multibillion-pound banking scandal has been obscured for more than a decade.

High street banks paid £2.2 billion in compensation payouts. Tyler, who executed in excess of £100 billion of interest rate derivatives in his banking career, said the regulator does not want to answer his questions because accurate responses would result in calls for billions of pounds in additional compensation.

Ian Tyler, a 62-year-old City veteran who served as head of Royal Bank of Scotland’s balance sheet, held senior roles at Alvarez & Marsal and Deloitte, and was group treasurer at Tesco Bank, has been trying to get the Financial Conduct Authority to answer questions concerning financial derivatives for more than a year.

Tyler is also a former group head of capital at Royal Bank of Scotland. He wrote to Nikhil Rathi, chief executive of the Financial Conduct Authority, more than a year ago to ask why the authority was making statements that the FCA should know to be the exact opposite of the rules.

At the regulator’s annual meeting last October, Tyler asked whether the exposure calculation was required by prudential regulation and not solely an internal risk measure, whether the methodologies allowed for the calculator are objective in nature, and whether the calculation was a good representation of a customer’s potential financial commitments and therefore had to be disclosed.