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.
Cadbury set to fight back with Kraft Foods defence document
Over the next 14 days we will see the emergence of a defence document from Cadbury in response to the official Kraft Foods offer for the company. It is believed that the Cadbury board will focus upon the many brand names within the group, an ongoing restructuring programme which has seen margins improve already as well as the company's plans to attack a number of emerging markets round the world....Read More
Brits rely on credit to fund basic household emergencies
Consumers in the UK do not have the savings they would need to pay for basic household breakdowns and repairs, a new report has said.A study by Alliance & Leicester Savings found that 45 per cent of people thought they would struggle to raise more than £500 in the event of an emergency.One in five people (21 per cent) revealed they would find it difficult to find more than £100 to pay for someth...Read More
UK government distances itself from Lord Turner
While the UK government has for many months now been attacking the UK financial system and financial sector on a regular basis, today's comments from Lord Turner regarding a potential financial tax appear to have formed a wedge between the two parties. Despite backing Lord Turner to the hilt on numerous occasions in the past, the UK government has today distanced itself from his comments with a si...Read More
Are you recycling enough?
The subject of recycling is upon one which the Labour Party has been very vocal and introduced sweeping changes over the last decade, which have to all intents and purposes penalised those who do not recycle a certain percentage of their waste. Even though the Conservative party, who many believe will win power at the next election, has suggested a carrot rather than a stick approach to recycling...Read More
Npower to cut 1,400 UK jobs
28/11/2013 Energy giant Npower which employs 9,600 workers in the UK is to cut 1,400 UK jobs, with a number of these being outsourced to India. The cuts are expected to be in relation to site closures at Peterlee in Durham, Thornaby in North Yorkshire, and Stoke-on-Trent in Staffordshire, however it’s expected that Npower will confirm exact details later on. Npower stated that the reason...Read More