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.
Christmas comes early for buy to let landlords
A court ruling today has breathed new life into the buy to let sector and opened up the potential for compensation claims which could top £20 million. The case against Foxtons, the well-known London letting agency, resulted in Mr Justice Mann ruling that the company overcharged commission to landlords. Indeed the judge went on to describe Foxtons agreements as "traps and timebombs" which could pr...Read More
Surprise jump in UK unemployment
UK unemployment has risen to nearly 2.4 million with a jump of over 280,000 in the three months to May 2009. These figures are way above what analysts had expected, with some pencilling in a rise of 140,000, and do not bode will have a future. The overall rate of unemployment in the UK now stands at 7.6% and with the figure expected to top 3.2 million sometime during 2010 the situation is turning...Read More
Barclays Bank aims for the top
Fresh from the recent acquisition of Standard Life Bank, Barclays has now revealed a number of changes in the higher ranks of the company's offshoot Barclays Capital with a number of heavyweights brought on board to push the operation further forward. To be honest, Barclays Capital has always been one of the major players in the worldwide mergers/acquisitions arena and financial markets, but with...Read More
Zurich Insurance loses personal data for British customers
It has been revealed that ZÃ¼rich Insurance has lost a data tape which held the personal details of 51,000 of the company's British customers. The revelation comes more than a year after the tape was lost in transit from South Africa and there are concerns that the company, while admitting the error to the regulatory authorities some time ago, has not yet been in touch with customers to warn the...Read More
Is the immigration issue is set to explode in UK?
As unemployment continues to creep higher and higher there are serious concerns growing in government circles that the issue of immigration is set to dominate the headlines in the weeks and months to come. Many believe that the current government is set to pay the price for a very slack and lacklustre immigration policy which has seen the UK attract millions of workers from overseas.