The cost of compensating businesses for the mis-selling of complex derivative products is to double to more than £1.5bn across the UK's major banks.

The Sunday Telegraph can reveal that at least one of the "Big Four" banks – HSBC, Royal Bank of Scotland, Lloyds and Barclays – is poised to increase its provision for the sale of interest rate swaps to small and medium-sized firms by more than twofold. Another of the four is understood to be ready to treble the amount it has set aside for its involvement in the scandal, first revealed by The Sunday Telegraph in March 2012.

One senior banking source said he thought that it was possible that all four banks would have to at least double the combined £720m they have so far set aside to cover the cost of swaps mis-selling. Banks are becoming increasingly concerned that the Financial Services Authority (FSA) has set the parameters on which businesses are eligible for compensation too widely, meaning that many sophisticated players in the financial markets are attempting to claw back money....Read more here: Rate swap scandal: mis-selling bill to top £1.5bn

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