Barclays, RBS May Pay Billions on Improper Derivatives Sales
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Barclays Plc, Royal Bank of Scotland Group Plc and Britain’s two other biggest banks may have to pay as much as 5 billion pounds ($7.92 billion) to compensate small businesses improperly sold interest-rate derivatives following a probe by the U.K. financial regulator.
The lenders, including Lloyds Banking Group Plc and HSBC Holdings Plc, have set aside about 740 million pounds to cover the claims. Analysts say the total charges for the industry may be much higher than that after the Financial Services Authority said it found “serious failings” in reviews of product sales.