The American Empire in a Changing World


Thursday, July 26, 2012

''Redress for bank mis-selling victims''


''The prospect arose after the Financial Services Authority (FSA) announced it had found “serious failings” by four major banks in the sale of interest rate swap products to SMEs.

Interest rate swaps, also known as hedges or derivatives, are complex financial products sold by banks, including RBS, HSBC, Lloyds, Barclays and Clydesdale Bank, alongside business loans.

The products, which first emerged in 2001 and became commonplace in 2006, were sold to SMEs on the premise it could protect their borrowings against rises in interest rates.

They were typically offered to customers seeking to refinance their existing loan facilities, and became more aggressively sold as the banks and sales people who did the deals realised how lucrative they could be.''

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