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 recession was the deepest since 1921
It has been revealed that the UK recession, which many believe ended in the final quarter of 2009, was the deepest and the hardest hitting since 1921. While it would be unfair to suggest that no other economies around the world have suffered to the same degree as the UK economy, there is no doubt that the UK is one of the slowest economies to recover. This has been a wake-up call to many who ro...Read More
What is ethical investing?
Over the last few years we have seen a substantial growth in the popularity of investment strategies such as ethical investing (otherwise known as socially responsible investing) but are the returns in the same league as non-ethical investment?
It is worth reminding ourselves what the term ethical investing actually relates to and the restrictions this can have on your investment de...
The eight Tory party economic benchmarks
Shadow Chancellor George Osborne has today issued eight Tory party economic benchmark measurements which he believes will allow those in the UK and around the world to measure the performance of the UK economy. One of the major pledges is to retain the UK's AAA credit rating which has been under a little doubt over the last few months because of the large budget deficit predicted for the next few...Read More
UK advertising market is still under pressure
Despite the fact that it appears that the UK economy is consolidating at worst and possibly showing signs of recovery, Carat, a subsidiary of media giant Aegis, believes that we will not see a full recovery in the advertising industry until 2011 at the earliest. However, media moguls are starting to see evidence that the rate of reduction in advertising spending is slowing which is giving many of...Read More
“Staggeringly Strong” figures show UK Unemployment fall
22/01/2014 The latest figures from the Office for National Statistics show unemployment drop to 7.1%, in what BNP Paribas, Chief UK economist David Tinsley has described as “staggeringly strong.” The figures come within touching distance of the 7% benchmark set by the Bank of England as the point they will consider increasing interest rates, despite the Bank previously claiming that the...Read More