Britain’s banks need a ???real change in culture??? following a series of scandals that have rocked the industry, Bank of England governor Sir Mervyn King said today.
Sir Mervyn’s comments came as Britain’s biggest lenders were embroiled in fresh controversy over rigging key interest rates, as well as further evidence of mis-selling.
The governor ruled out a Leveson-style inquiry but hit out at the banks for “excessive levels of compensation, shoddy treatment of customers and a deceitful manipulation of one of the most important rates”.
The Financial Services Authority (FSA) revealed earlier that Barclays, HSBC, Royal Bank of Scotland and Lloyds Banking Group had agreed to pay compensation to customers who were mis-sold complex financial products, called interest rate swaps.
The findings come after Barclays was fined ??290 million by UK and US regulators for manipulating the rate at which banks lend to each other.