Martin Wheatley tells banks to speed up payments
Martin Wheatley, the chief executive of the Financial Conduct Authority, has told banks to stop dragging their feet and compensate without further delay small companies to which they mis-sold interest rate swaps.
"In a situation where many small-companies employers who took out these products are struggling to make ends meet, the industry is deceiving itself if it imagines that a total of 32 offers accepted, totalling £2m, is adequate progress" said Mr Wheatley in a hard-hitting speech at the Mansion House in London.
High street banks have had to set aside about £3bn to compensate firms to which they sold complex contracts intended to insure them against a rise in interest rates. Mr Wheatley added that the slowness of banks to provide compensation was aggravating the "unfairness" of the original mis-selling.
Some banks seem already to have taken on board the regulator's message. Earlier this week, HSBC and Royal Bank of Scotland announced a new system whereby compensation for mis-selling will be handed over before full losses are determined.
But Barclays and Lloyds have said they will continue to pay on a case-by-case basis. RBS is assessing 9,713 cases, Barclays 2,412, HSBC 3,315 and Lloyds 1,905.
- 1 Apple has installed security backdoors on 600m iPhones and iPads, claims security researcher
- 2 UK pirates will get four warning letters a year
- 4 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 5 Israel-Gaza conflict: Deadly flechette shells 'used by Israeli military in Gaza Strip’
Malaysia Airlines flight MH17 crash: 'Nine Britons, 23 Americans and 80 children' feared dead after Boeing passenger jet is 'shot down' near Ukraine-Russia border
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
iJobs Money & Business
£850 - £950 per day: Orgtel: Programme Director - Conduct Risk - Banking - £85...
£45000 - £50000 Per Annum + excellent benefits: Clearwater People Solutions Lt...
£250 - £300 per day + competitive: Orgtel: Finance Manager - Accountant - Bank...
£100000 - £120000 per annum + BONUS + BENEFITS: Harrington Starr: A leading fi...