Bank of London Board Ignorant of Unpaid Tax Obligations
Recent Developments at the Bank of London
The Bank of London’s board of directors and new management team were unaware of its unpaid debts to UK tax authorities until HM Revenue & Customs (HMRC) filed a petition to wind up its holding company on Thursday. The board, chaired by private equity executive Harvey Schwartz and including Labour party grandee Lord Peter Mandelson, scrambled over the weekend to shore up confidence among regulators and customers.
Funding and Leadership Changes
After days of unsettling events, the bank announced on Sunday that it had raised £42 million in fresh financing led by board member Mangrove Capital Partners, a Luxembourg-based investor. The bank clarified that the new investment was unrelated to the HMRC petition, attributing the issue to an administrative delay.
Board Restructure and Future Plans
The capital raise occurred shortly after the announcement of founder Anthony Watson stepping down as CEO. Stephen Bell, the bank’s former head of risk and compliance, has taken over as CEO. This investment reflects investor confidence in the bank’s leadership and its unique model as a competitor to the UK’s major lenders.
- Customer deposits exceed £500 million.
- More than 4,500 clients on board.
- Long-term confidence in available funds.
Outlook for the Bank of London
The bank's holding company is actively meeting with the Bank of England to discuss governance improvements. The HMRC petition posed risks, but the new influx of capital sets a foundation for strategic growth. As the bank stabilizes its operations, it remains focused on enhancing client relationships and regulatory compliance.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.