A top official at the Financial Services Authority (FSA) has warned Britain's four largest banks face more questions over their sale of interest rate hedges to small business customers.
Martin Wheatley, head of financial conduct at the FSA, said he thought the largest banks had been responsible for the sale of 95% of the controversial interest rate swap products to small businesses, writes the Telegraph.
"We think there are a number of questions to answer," he said yesterday while giving evidence to the Treasury Select Committee. "We hope to give an initial view of where those questions are and the way forward."
MPs will today hold a debate in the House of Commons to discuss the issue of swap mis-selling by banks, including, Barclays, Lloyds Banking Group, HSBC, and Royal Bank of Scotland.
Members of Bully Banks, an organisation formed by small businessmen who claim to have been mis-sold swaps by their lenders, are due to protest outside the Palace of Westminster before the debate.
The FSA is in the final stages of a review into how interest hedging products were sold to small businesses amid claims banks did not properly explain the risks leaving victims with hundreds of thousands and even millions of pounds in costs they were never warned about.
The regulator has confirmed it will publish details of its review before the end of the month, as well as what further action it intends to take.
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