Sir Mervyn King
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Banks to compensate customers for mis-selling financial products

Some of Britain's biggest banks have been found guilty of "serious failings" in the way they sold small businesses products complicated financial products.

The FSA said it had reached agreement with Barclays, HSBC, Lloyds and RBS over providing "redress" to customers.

The revelation follows news earlier this week that Barclays, and other banks, had been fixing a key interest rate.

The governor of the Bank of England, Sir Mervyn King has called for a change in the banking culture, saying that customers have received "shoddy" treatment.

Robert Peston reports.

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