The founder of a card insurance firm at the centre of a £1.3bn (€1.5bn) mis-selling scandal launched a colourful tirade against City regulators as they announced a compensation package for 7m victims.

Police have arrested two men in the first criminal investigation into illegal share selling by City regulators, it emerged today.

Shareholders in British building society Abbey National today gave the go-ahead for a takeover by Spain’s largest bank after a stormy meeting in which the group faced a barrage of criticism.