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 looking to create three new high street banks
The UK government is looking to create three new high street banks with the forced sell-off of bank branches by Lloyds bank Royal Bank of Scotland in the short to medium term. However, it is unclear exactly how these new banks will be created and what kind of strategy and service they will offer the UK population.
Ultimately the UK government would prefer to see a more local economy...
Rain dampens Morrisons sales
A rainy couple of months depressed sales at W Morrisons, the grocery chain has admitted.Morrisons said its sales growth had slipped since its May AGM, when it reported increased pre-tax profit of £374 million for 2006/07 compared to £54 million in the previous 12 months.The supermarket blamed tougher comparisons against last year's figures, when it said the market was doing well from good weathe...Read More
Is the humble cheque set to be terminated?
Despite opposition from small businesses and consumer groups, UK banks are set to vote next week on the possible abolition of cheques as a method of payment in the UK. While this has been an ongoing situation for some time, there are still around 3.8 million cheques written every day in the UK although this number has fallen by 66% over the last 20 years. So why are the UK banks looking to abolish...Read More
Barclays bank on target for record profits
Barclays bank has today revealed profits of £4.5 billion for the first nine months of 2009 and is on target for a record year. This comes despite the fact that the UK banking sector is still under a cloud with the likes of Lloyds bank and Royal Bank of Scotland still suffering from financial pressure and having to be bailed out by the UK taxpayer. Barclays has also announced plans to resume the p...Read More
Beware the latest council tax scam
It has been revealed that criminal gangs are targeting UK households up and down the country in the latest scam to obtain your bank account details. A number of UK residents have been approached about their council tax, by parties claiming to be connected with the local authorities. They are either informed that they have overpaid or underpaid their council tax and are being asked to give evidence...Read More