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Further misery for banks expected

Britain's banks will be embroiled in a fresh scandal today over complex financial products which have landed small businesses with spiralling bills.

The Financial Services Authority (FSA) is expected to reveal that it has found evidence of mis-selling as part of a review into the way lenders pushed so-called interest rate swap arrangements (Irsas).

Irsas are complicated derivatives products that may have been sold as protection - or to act as a hedge - against a rise in interest rates without the customer fully grasping the downside risks.