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TSB CEO Apologizes to U.K. Lawmakers for IT System `Shambles'

  • Pester says ‘deeply sad’ about damage to bank’s reputation
  • British bank faces fines, compensation and regulatory probes
Paul Pester in 2013.

Paul Pester in 2013.

Photographer: Matthew Lloyd/Bloomberg

The chief of Banco de Sabadell SA’s U.K. unit repeatedly apologized to lawmakers and will relinquish part of his bonus after a bungled roll-out of a new computer system left hundreds of thousands of customers unable to access services.

TSB Banking Group Chief Executive Officer Paul Pester, who’s run the lender since 2013, said he takes “absolute responsibility” for “unacceptable” customer service, in testimony before the Treasury Select Committee in London on Wednesday. However, Pester denied the new platform was rolled out prematurely without adequate testing or that its Spanish parent company, which provided the system, put pressure on them to speed up the process.