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Bank of London Faces Regulatory Probe and Financial Uncertainty

The Prudential Regulation Authority investigates historical compliance issues as auditors warn of significant doubts over the bank’s ability to continue operating.

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Lord Mandelson, the UK’s ambassador to the United States, stepped down as a director of Bank of London last October

Overview

  • The Prudential Regulation Authority (PRA) has launched an investigation into historical compliance issues at the Bank of London, focusing on matters predating its 2024 ownership change.
  • The bank is under enhanced regulatory supervision due to reporting deficiencies, as revealed in its delayed 2023 accounts filed seven months late.
  • Auditors EY have flagged material uncertainties about the bank’s ability to continue as a going concern, citing inadequate historical records and unresolved financial control issues.
  • The Bank of London reported a £12.4 million loss for 2023, with workforce reductions halving its staff to about 100 as part of an ongoing restructuring effort led by new CEO Christopher Horne.
  • Mangrove Capital has injected £57 million into the bank since last year and committed an additional £25 million to support its turnaround plan under new leadership.