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2011 was a costly year for the UK's financial institutions, both in terms of their bottom lines and their reputations.
Figures obtained by the Financial Times and a leading law firm have found that Banks paid more than £160 million in compensation to customers last year after a crackdown by financial regulators.
Barclays was labelled the worst offender following the companies damaging PPI compensation and payouts for the year were nearly treble the £62 million in 2010. The bank was ordered to shell out £59 million to retail customers and was fined £7.7 million for failings in the way it sold funds labelled "cautious" and "balanced".
HSBC was also trageted by the Financial Services Authority (FSA) and landed with the largest ever retail fine of £10.5 million for mis-selling investment bonds to elderly customers. And in at least five separate cases, banks were ordered to pay at least £1 million in compensation.
"We have had some significant retail fines against big firms that should know better. The big players have the potential to damage larger swathes of the community than the small firms," Acting FSA enforcement director Tracey McDermott told the Financial Times.
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