Banks to pay compensation after mis-selling scandal

The Financial Services Authority (FSA) revealed on Friday that it had found 'serious failings' in the way lenders sold complicated interest rate protection products to small- and medium-sized businesses (SMEs).

The Financial Services Authority (FSA) revealed on Friday that it had found 'serious failings' in the way lenders sold complicated interest rate protection products to small- and medium-sized businesses (SMEs).

"In order to provide as swift a solution to this problem as possible we have today confirmed that we have reached agreement with Barclays, HSBC, Lloyds and RBS to provide appropriate redress where mis-selling has occurred," the FSA said in a statement.

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