Alex von Stachelkopf
The Financial Services Authority (FSA), a major UK financial regulator, is going to inspect the financial products offered by the country’s 4 biggest banks.
It should be noted that such inspections may result in those banks suffering major losses in the form of fines and multi-million compensations.
The FSA’s press release says that the banks agreed to have their products expected and are willing to pay fines and compensations if there are violations. These are Barclays Plc, HSBC Holdings Plc, Lloyds Banking Group Plc and Royal Bank of Scotland Group Plc.
The focus is on those products that are designed to hedge against percentage risks. FSA experts underline that clients failed to estimate their own risks precisely.
Meanwhile, European banks are suffering from the eurozone debt crisis. There recovery pace varies from bank to bank.
Alex von Stachelkopf
