The banks are on the verge of facing legal action for the fraud they committed with the investors which could lead to loss of billions of pounds for small and medium-sized businesses, the Sunday Telegraph reports.
According to the allegation, the banks made profits at the cost of small and medium business owners by pushing them to take out highly complex interest rate derivatives.
Many of the suffered business owners told The Sunday Telegraph that they were not aware of the significant costs attached to the products that were supposed to protect loans from upward movements in interest rates.
The news agency said that when the interest rate fell after the 2008 financial crisis, businesses were left facing significant bills, with some of the derivatives cost business owners hundreds of thousands to millions of pounds.
