Barclays' Rate-Hedging Provision Puts Focus on Other Banks

Barclays’ Rate-Hedging Provision Puts Focus on Other Banks

by The Compliance Exchange on July 27, 2012

Barclays PLC’s (BCS) disclosure Friday of a 450 million pound ($704.8 million) provision to redress customers that had been missold interest-rate hedging products comes as the other three major U.K. banks report earnings that will likely reveal further disclosures on the issue.

Barclays, together with HSBC Holdings PLC (HBC), Royal Bank of Scotland Group PLC (RBS) and Lloyds Banking Group PLC (LYG), last month agreed with the Financial Services Authority to settle claims in connection with “serious failings” in the sale of the derivatives.