Are Banks Putting Investors in Peril? ; Low Interest Rates Are Helping Salesmen Lure Savers Into Risky Stock Markets, Say Advisers the Investors in Danger

Summary

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WITH interest rates at their lowest for centuries, returns are lean on even the largest cash deposits. That leaves many savers, especially pensioners, desperately seeking ways to boost their income. Worryingly, there is growing evidence that banks are exploiting the situation to sell complicated and sometimes highly risky investments.

They might be funds investing in world stock markets or complex 'structured products' where returns are 'guaranteed' only if an array of conditions are met. These deals are highly profitable for the banks but can leave savers facing serious losses.

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Extract

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Are Banks Putting Investors in Peril? ; Low Interest Rates Are Helping Salesmen Lure Savers Into Risky Stock Markets, Say Advisers the Investors in Danger

Barclays is one major bank embroiled in an investment mis- selling row. Its sales staff have peddled risky stock market investments to thousands of older customers in recent years, usually...

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