Day of reckoning for two top UK banks

RBS has had to agree to a £3.6 billion penalty with the US Department of Justice to end the investigation into sales of financial products – some of them toxic mortgage bonds – just before the 2008 financial crisis.

Channel 4 News has seen a damning internal review into Lloyds’ disastrous takeover of HBOS in 2009.  It claims both banks knew about a vast toxic debt pile connected to fraud at HBOS Reading before recommending their merger to shareholders.

Business Editor Siobhan Kennedy reports.