TSC chair welcomes Pester exit from TSB

TSC chair welcomes Pester exit from TSB

The chairwoman of the Treasury select committee has welcomed the news the chief executive of TSB is stepping down.

This morning (4 September) TSB announced Paul Pester would be stepping down after the bank faced IT problems which left almost two million people locked out of online banking services in April.

Earlier this year the committee said it has lost confidence in Mr Pester after coming to the conclusion he had "not been straight" with the committee when he appeared before it in the aftermath of TSB's tech problems.

Nicky Morgan, the committee's chairwoman, said: "Since the IT problems at TSB began, Paul Pester set the tone for TSB’s complacent and misleading public communications. The Treasury committee, therefore, concluded that it lost confidence in Dr Pester’s position as chief executive of TSB.

"In this light, it is right that he is stepping down."

But she added: "The committee remains concerned about the continuing problems at TSB, including unacceptable delays in compensating customers who have been badly let down. It is to be hoped that Dr Pester’s successor is able to restore the confidence of the bank’s long-suffering customers."

When it announced Mr Pester would be standing down, to be replaced by chairman Richard Meddings as executive chairman, TSB acknowledged there was still work to be done to achieve "full stability" for its customers, but it also said its systems and services were "much improved" since the problems began earlier this year.

Problems with TSB's IT system began in April, when the bank began moving its customer data from a system controlled by its former owner, Lloyds Banking Group, to a new system built by its new owner, the Spanish banking group, Banco Sabadell.

The new system proved unable to cope with the number of people attempting to use it and some TSB customers faced problems for weeks after the migration.

The Financial Conduct Authority later revealed it was investigating TSB over the fiasco.