A senior Lloyds executive is suing the Lloyd's Banking Group for £1 million in lost earnings, alleging that he was forced out of his post after blowing the whistle on "startling" failures in the bank's disaster recovery systems.
In a submission to the Central London Employment Tribunal, Stephen Clements, claims that two-thirds of the bank's systems were not subject to resiliency tests, leaving "very serious gaps” in their ability to recover critical IT systems.
The former head of business continuity at Lloyds alleges that the problems were so severe that they would have cost £200 million to repair. When he raised the issue with senior management, Clements says he was told the 'burn the paper' on his report and "never bring it out again".
While the bank has denied the allegations, Clements alleges a deliberate cover up to bury the problem due to high cost of repairing the flaws, and the attendant reputational risk issues.
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