The City was stunned when last week the Bank of London Group, which is only the second new British clearing bank in two centuries, was served with a winding-up petition from HMRC. A legal process that can force a company into liquidation to pay off its debts. It’s a highly unusual move, typically seen as a “last resort” for the tax authority. Tax lawyer Dan Neidle described it as the “nuclear option” for HMRC, adding that he has never seen it used against a major financial institution before…

The order came two days after the firm’s founder, Anthony Watson, stepped down as CEO. Watson has an impressive résumé: he was awarded a CBE last year for services to the LGBT community and was once described as “one of the most influential gay men in the world.” Watson studied theology and has a lot of experience working in IT rather than finance…

Watson also chaired Labour’s business and enterprise advisory council for two years. Labour’s Peter Mandelson was brought onto the Bank of London’s board as deputy chairman in 2022. It’s odd that the bank appears to have not paid its bills, despite raising £30 million from investors in only February. The bank has had to hastily raise another £42 million from surprised shareholders. As Neidle puts it, the winding-up order “suggests major governance and administrative failings”…