Report Finds Widespread Faulty Derivative Sales By UK Banks

Law360, New York (January 31, 2013, 5:03 PM EST) -- A review of interest rate hedging products sold to small businesses by Barclays PLC, The Royal Bank of Scotland Group PLC and two other major British banks revealed that over 90 percent of the sales were improper, U.K. financial regulators said Thursday.

The U.K. Financial Services Authority said that a sampling of the hedging products sold by the country's four largest banks — Barclays, RBS, HSBC Holdings PLC and Lloyds Banking Group PLC — to unsophisticated customers unlikely to understand the risks associated with the products...
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