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.
UK government backtracks on bank earnings regulations
The UK government today stands accused of another massive U-turn after the revelation that despite months and months of pressurising the UK banking system to reveal the highest earners in the UK, there will be last-minute changes to the regulations. There were massive concerns that star traders in the UK would be forced to flee overseas if their earnings were revealed to the public, and this appea...Read More
When will we know the recession is over?
Industrial output figures for October were released today with many analysts dismayed by the lack of growth in the UK economy despite hopes that the final three months of 2009 would bring in a new era for the UK business arena. This now begs the question, when will we know the recession is actually over? We have seen many contradicting figures over the last few months indicating the UK economy...Read More
Market awaits confirmation that the recession is over
Later this morning the Office for National Statistics will release data that should confirm that the UK economy moved out of recession in the fourth quarter of 2009 and is now back on the growth path. However, even if the UK economy has moved out of recession what does this mean for businesses and consumers across the country? The truth is that there will be a significant lag between the econom...Read More
Is The UK Now Suffering From Migrants Returning Home?
Over the last few years the subject of migrants flocking to the UK from the likes of Poland has been at the centre of much controversy and debate. When the UK economy was going well there were complaints that many of these new visitors to the UK were taking much needed employment and causing problems for the domestic work force. However, after a period of sustained growth for the UK economy it s...Read More
Swinton insurance hit by regulator censorship
Insurance broker Swinton has today revealed a £770,000 fine from the Financial Services Authority (FSA) in relation to techniques used to sell Payment Protection Insurance (PPI), one of the more controversial insurance policies of late. It has also been revealed that Swinton will be repaying PPI premiums to 350,000 customers who automatically had PPI added to the cost of their insurance during a...Read More