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More than 40,000 interest rate swaps could have been mis-sold to small businesses by their lenders, according to a revised estimate of the potential scale of the scandal by the Financial Services Authority.
The FSA has been forced to up its estimate of products mis-sold to businesses across the country by about a third, from 28,000, after being supplied with new information by banks. The new figure suggests the potential cost of the swap mis-selling scandal could be substantially higher than current estimates by both banks and the regulator. Barclays, HSBC and Royal Bank of Scotland have so far put aside a combined total of about £630m against the cost of compensating customers mis-sold interest rate hedging products by their investment banking arms. Lloyds Banking Group has said it does not expect the compensation costs to be “material”....Read more here: FSA lifts estimate of mis-sold swaps - Telegraph
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Banks could face tens of thousands of new claims over the mis-sale of complex interest rate derivatives to small businesses, after a decision by Clydesdale and Yorkshire banks to widen the products on which they will consider paying out compensation.....Read more here: Banks face thousands more rate swap mis-selling claims after Clydesdale and Yorkshire banks widen review