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 bankers lobby Chancellor to drop 50% bonus tax
Some of the U.K.'s most senior bankers have joined forces to lobby the UK government into dropping the proposed 50% bonus tax in exchange for a combined contribution, on a voluntary basis, of £2 billion from the UK financial sector. This is set to cause some problems for the UK government as the proposed bonus tax is forecast to bring in around £550 million in its one-off year against a proposed...Read More
Mortgage lending at record high
Mortgage lenders are handing over more money than ever before, the Council of Mortgage Lenders (CML) has announced.The CML reported an all-time high gross mortgage lending sum of £34.2 billion in June - up from £31.4 billion in May.The rise is a result of hikes in interest rates and high house price inflation, but belies the fact that the CML, the Building Societies Association (BSA), and the Br...Read More
Darling hints at further rescues
The economy could need another government stimulus package, the chancellor of the exchequer has admitted.In an interview with the Observer, Alistair Darling said that the move would likely be made if the £20 billion recession-busting plan outlined in the pre-Budget report last week failed.The plan included a cut to VAT, which comes into effect today - along with a big expansion of public works pr...Read More
Watch Out For That Phishing Scam
The last few years have seen the internet used as a new medium for the fraudsters and con artists around the world with literally million of pounds being stolen or obtained fraudulently. While many companies have introduced sophisticated security procedures the fraudsters still continue to thrive and the number of phishing scams continues to rise.
One of the main areas which the ph...
Will the UK economy benefit from the current shakeup?
As the UK economy literally goes from bad to worse there are some economists suggesting that a serious shakeup of the UK economy has been on the cards for some time. Over exuberance and a massive buildup of debt have been the catchwords of the last decade and many analysts believe "chickens are coming home to roost".
There is no doubt that the last decade has seen record debts in th...