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UK Banks set aside 600M Pounds for Mis-sold Retail Swaps

Posted by Jack Duval

Dec 19, 2012 2:27:20 AM

The Telegraph is reporting that 24 MPs are requesting the FSA to force UK banks into suspending interest rate payments on retail swaps.  (Telegraph)  Here's the basics:

Banks must be forced to offer a moratorium on payments that thousands of small businesses are still being forced to make on interest rate swaps, according to a group of MPs investigating the scandal.

The Financial Services Authority and Treasury have been told they must push banks to offer an immediate freeze on all swap payments, according to a letter signed by 24 MPs.

“There are many businesses who are continuing to enter administration as a direct result of their obligations under their swap contracts,” wrote Guto Bebb, a Conservative MP and chairman of the All-Party Parliamentary Group on swap mis-selling.

FYI, "administration" in the UK is bankruptcy.

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Topics: administration, Swaps, bankruptcy, FSA, litigation, investments, retail

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