Banks are struggling to control their liabilities following a Financial Services Authority finding that 90% of interest rate swaps (IRS) products banks sold to SMEs were in breach of regulatory requirements, and a judge’s ruling rejecting 24 Barclays employees’ demands for anonymity.
Stephen Rosen, head of financial services disputes at Collyer Bristow, described the FSA report as ‘a major step forward’. He told the Gazette: ‘Every time I see a figure for the amount banks have set aside for IRS mis-selling cases, my reaction is "that’s not enough".’
The FSA report maintains the line that bank clients do not need legal representation in IRS mis-selling reviews.
However, Rosen said that represented clients ‘will likely get a better deal’.
The report coincided with a judge’s ruling in Barclays v Guardian Care Homes, an IRS claim with a Libor-manipulation element. The judge decided the names of the Barclays employees engaged in Libor manipulation can be disclosed.
The ruling opens up the possibility of more criminal actions against employees.