Firms hit with initial £406m levy for bank failures

The Financial Services Compensation Scheme (FSCS) is issuing an initial levy to deposit taking firms for interest charges on the loans it used to fund its compensation payments following the failures of five banks. These were: Landsbanki Islands hf (Icesave), Bradford and Bingley, Heritable, Kaupthing Singer and Friedlander and London Scottish Bank. FSCS costs for the defaults were funded through loans from HM Treasury on an interest-only basis for the first three years. The FSCS will agree a repayment scheme with HM Treasury to use any recoveries received to repay the principal an...