Full scale of swaps scandal comes into focus
With bank reporting season getting into full swing, the scale of the interest rate swaps mis-selling problem is becoming clearer, according to a claims specialist.
Since AccountingWEB last reported on the issue in November, there have been a number of legal and other updates in the area, including the FSA’s pilot findings on interest rate hedging products and negotiations between MP Guto Bebb and the banks that sold the arrangements to small businesses.
Daniel Hall of Treasury product claims specialist All Square Treasury said the industry was “finally waking up”.
“Banks are now making material provisions, with Barclays increasing theirs to £850m and RBS expected to increase theirs to £1bn, bringing industry provisions to around £2bn,” he said.
“These figures could have been much higher had changes to the FSA review scheme not been reduced.”
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