Relief for small business, more bad news for the banks

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The financial district of Canary Wharf, seen from the 'Gherkin' in the heart of the city of London
Another bad day for banks, who may have to pay out billions in compensation. Photo: Reuters

Despite fears the Treasury was trying to restrict how tough the authorities would be on the banks, this morning, the FSA's findings on 'swaps' (explained here) will be a relief for some firms.

The FSA has been looking at a small sample of the 40,000 companies who have been affected to work out the scale of the problem. And they have concluded that as many as 90 percent of them may have been mis-sold.

And mis-selling means the possibility of compensation, the FSA says, for a 'significant proportion.' This opens up the possibility of a bill of billions of pounds for our under pressure banks.

They have already been pounded by a bill for billions for PPI.

We'll be talking to the man in charge of the report, Martin Wheatley, a bit later today as again the past misdemeanours of our banks catch up with them today.