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.
Has the UK economy really turned the corner?
There is much comment and speculation in the press this morning regarding the UK economy and the fact that yesterday's growth figures of 0.1% in the final quarter of 2009 were well below analysts expectations. As we have seen in the past, the Office for National Statistics has recently revised a number of economic data downwards at a later stage. If the same was to happen with the final quarter ec...Read More
The G20 party is certainly over!
Despite world leaders shaking hands and agreeing upon a number of vital proposals at the recent G20 meeting, this weekend has seen the emergence of significant internal disagreements. While around $300 billion of the $500 billion pledged by world leaders for the International Monetary Fund (IMF) has been agreed there is still a shortfall of some $200 billion.
At a time when Europe,...
BA workforce responds positively to management working request
Workers at British Airways have reacted positively to the management written request for assistance in reducing the airline's cost base. Originally Willie Walsh, the chief executive of British Airways, had asked up to 40,000 workers to give their services free for one month in an attempt to try and get the company back on track. However it has been revealed today that while many workers have volun...Read More
Home insurance warning for cold snap
Home insurance policies will need to be checked over the coming few weeks, it has been claimed, as cold weather is on the way.Home insurer More Than has warned that properties could be at risk of damage as weather forecasters are predicting a sharp deterioration in the weather, with temperatures plummeting.Taking precautions such as checking lagging is in place on pipes and keeping the heating on...Read More
What could we expect from a Conservative government?
As rumours continue to circulate around Westminster that Gordon Brown is set to announce a snap election in March, thoughts are now moving forward to next year and the potential for a Conservative government. What can we expect from the new Conservative party? Will it be any different from the Labour Party? The truth is that whichever party wins the next election, or gains minority control of t...Read More