Has the FSA gone too far regarding bank stress tests?
As we covered in one of our earlier articles, the Financial Services Authority (FSA) has issued a new set of guidelines regarding bank stress tests which will effectively force each and every financial institution in the UK to identify its own potential weaknesses. This is a rather bizarre way in which to protect the UK economy because all the regulators are doing is highlighting weak companies and making them susceptible to potential takeovers, mergers or limited financial backing.
If a company is forced identify a potential weakness in its own business model, then what is there to stop a predator approaching the company's shareholders and claiming that they could run the company better than its current board of directors. There are no industries in the world which force companies to do the homework of their potential predators and competitors and weaken their own reputation and financial strength in the eyes of investors. So why has the FSA decided to act now?
Even though the idea of "reverse stress tests" does appear to have some merit in the current economic climate it is absolutely crazy to ask a company to research its own weaknesses and then publish these for public consumption.
Are we seeing a recovery on the UK high street?
A number of UK retail companies have, over the last few days, published suggestions that life on the high street could be improving with sales set to rise in the short term. While we await official retail figures from the various retail agencies and more detailed guidance from retail companies, it does appear as though the last couple of weeks have seen an increase in activity on the high street.<...Read More
Wildcat strikes spread to other oil refineries
As we reported just a few days ago, an unofficial strike at the Lindsey oil refinery has now spread to other areas of the country. The initial unofficial strike action came about when over 50 redundancies were announced at one of the subcontractors operating from the Lindsey oil refinery, and despite union intervention the dispute is still rolling on.
At a time when the UK economy...
UK economy to fight deflation until 2012
At a time when the UK government and the Bank of England are trying to prop up a seriously weak UK economy many analysts are now focusing on the threat of deflation which could plunge the UK economy into a depression. Deflation is hitting the headlines more and more and while many people will never have experienced this in their lifetime this is certainly a period in the UK's economic development...Read More
Budget Headlines : Digital investment to increase - no figure announced
Digital investment to increase - no figure announced...Read More
Are prepaid credit cards the answer for those with financial problems?
As more and more people in the UK are refused traditional credit such as credit cards, overdrafts and loans we have seen the introduction of a new service, i.e. the prepaid credit card. This is a facility available to the vast majority of the UK population, even those with historic bad debts, and allows you to preload your credit card with funds before you spend. This allows those with credit prob...Read More