Ex-HBoS executive admits FSA 'worries' In particular the FSA slammed Mr Shankland's Integrated Finance, calling the "one-stop-shop" business model the "highest risk area of the corporate book." Its strategy left HBOS exposed across the entire capital structure of companies it backed - from bank debt, to risky subordinated loans, to equity and exotic products such as "PIK notes." "The model for integrated finance meant that the risk in individual transactions received less scrutiny than if debt and equity and been required to be sanctioned and managed separately," the report said. "In relation to the billions that were written off by the bank, my business was relatively small," Mr Shankland told The Daily Telegraph, adding he was "hugely concerned about what could happen" with fall out from potential enforcement proceedings at the FSA. I do worry about the whole thing. But what can you do about it? So far the FSA hasn't been in touch. The public censure of Mr Shankland's division is particularly embarrassing for Lloyds, because unlike Mr Cummings he is still intimately linked to the bank. He heads Caird Capital joint venture, an arms length vehicle that manages the companies that were in Integrated Finance. The equity alone cost HBOS £1.8bn but 70pc was sold to private equity firm Coller Capital for £332m. Caird drew more that £5m in fees in the year ending March 2011. It also handed out lucrative bonuses to senior employees. Mr Shankland insisted the portfolio will deliver good returns for the bank. It is a very complex situation. But we want to prove our case through results. Lloyds is pleased with the performance and we have the 100pc backing of both shareholders. Lloyds declined to comment. Bank auditing plea The accountancy body ICAEW has called for all audit challenges to be made public and published in banks' annual reports - which would improve transparency. The statement follows hot on the heels of the FSA's report on HBOS which criticised the bank for not ensuring auditors knew enough about the bank's risks.