Businesses 'must be compensated'
29 June 2012 Last updated at 10:18 BST
The Financial Services Authority says banks have been mis-selling specialist insurance to small businesses.
It says there were "serious failings" in the sale of the products which designed to protect firms from rising interest rates on their loans.
Speaking to the BBC, Treasury Minister Mark Hoban said businesses must be compensated in full - including from banks part owned by the taxpayer.