...........rates fell

The Treasury and the City watchdog have launched a probe into fears that hundreds of small businesses have been lured into complex, toxic loans by the UK’s biggest High Street banks. The banks, heavily criticised for not lending enough in the aftermath of the financial crisis, now face accusations of mis-selling loans during the boom years to small firms, ranging from fish and chip shops to care homes. The concerns focus on loans underpinned by highly complicated financial instruments, called ‘interest rate swaps’, which were meant to protect firms against rising interest rates. When rates slumped to historic lows in 2009, this gamble backfired and business owners were often left with bills worth hundreds of thousands of pounds. The amount they owed on the loan was ratcheted up and those wanting to back out of the deal were often hit with huge ‘breakage fees’.....Read more here--: Banks accused of foisting toxic loans on small firms