UK-based banks accused of massive mis-selling in Italy
Several UK-based investment banks have been accused of mis-selling financial products to Italian cities and regions.
Nomura, UBS and Deutsche Bank are among those accused by Italian prosecutors of mis-selling derivatives in deals worth 35bn euros (£28bn).
The banks deny wrongdoing, but refused to comment further because the matter is now before the Italian courts.
BBC Newsnight discovered that London's financial watchdog was made aware of the mis-selling, but failed to act.
When Newsnight approached the Financial Services Authority for a response it said it would not comment on individual cases, but acknowledged that no bank had ever been sanctioned in such circumstances.
Joe Lynam reports.
Newsnight is broadcast Monday to Fridays at 2230 BST on BBC Two. Or watch afterwards on BBC iPlayer or the Newsnight website.
12 Sep 2012