Clydesdale and Yorkshire in mis-selling talks with FSA
The Clydesdale and Yorkshire banks are the latest to be dragged into the watchdog's inquiry into the mis-selling of complex derivatives to small businesses.
The regional banks, owned by National Australia Bank, have confirmed they have held "discussions" with the Financial Services Authority over the issue but insisted this "does not mean that there has been any finding of mis-selling".
Britain's four biggest banks, Barclays, HSBC, Lloyds and Royal Bank of Scotland, have admitted mis-selling and could now be on the hook for hundreds of millions of pounds in compensation payments.
The derivatives, known as interest-rate swaps, were sold alongside loans ostensibly to protect small businesses against rising rates.
But they misfired when interest rates fell and left many firms facing crippling costs, which sent some to the wall.
The FSA has devised a compensation scheme to help firms which have suffered as a result of the mis-selling.
The review of Clydesdale and Yorkshire's business raises the possibility that still more banks could be dragged into the inquiry.
NAB has attempted to sell Yorkshire and Clydesdale but has never managed to find a buyer with which it can agree a price. Recently it announced plans that will see the banks retreating to their regional bases.
The watchdog is preparing to release more details of the mis-selling after facing criticism that its original document was too vague. While news of more banks being drawn in is significant, it is still thought that the majority of the mis-selling was done by the big four.
- 1 British tourists 'murdered' in Thailand: Pair's bloodied bodies found naked on Koh Tao beach
- 2 Vivienne Westwood says 'Yes' to Scottish Independence by declaring: 'I hate England'
- 3 Welcome to Cameroon, where drinking Baileys can lead to imprisonment
- 4 Lego breaks out of the toy box and heads for the gallery
- 5 Vogue under fire for 'Big Booty' article
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
Salmond accused of laughing off national debt with ‘what are they going to do: invade?’ joke
iJobs Money & Business
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
£35000 - £38000 per annum + Benefits: Ashdown Group: Training Coordinator / Pl...
Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)
£400 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...