Is the UK government passing the regulatory buck?
Despite the fact that the Bank of England has been central to the UK regulatory system for hundreds of years it is noticeable that in today's White Paper regarding regulatory changes in the UK there were no new powers for the bank. Instead the UK government has chosen to increase the stature and power of the FSA (Financial Services Authority) amid accusations that the government has more power and more sway over the FSA.
It is no coincidence that the Bank of England has recently been "standing up to" the UK government and is anything but a "yes man". Many people believe this independent approach to the UK financial system and the regulation of markets, something which the Labour government introduced, is the reason why the Bank of England is being overlooked by the Treasury and the Chancellor of the Exchequer.
As we have covered on numerous occasions, the relationship between the "Old Lady of Threadneedle Street" and the UK financial markets is cemented in stone and goes back decades. There is growing speculation that these proposals put forward by the UK government will never actually reach the statute book due to the potentially serious impact upon business and the competitiveness of the London markets.
Share this..
Related stories
Are debt management companies worth their commission?
The UK government has recently confirmed that the debt management companies, currently outside of the regulatory loop, will soon be regulated by the FSA (Financial Services Authority). These are the parties who act on behalf of their customers in organising loan consolidations and other debt arrangements for which they receive an upfront payment and potential payments further down the line. So are...
Read MoreBank of England under severe pressure for rate cut
The noise level aimed at the Bank of England is growing with more and more people accusing the Bank of being out of touch and calling for an immediate cut in interest rates. Even though the official stance has been that inflation must fall before interest rates follow it seems as though there may be a softening of the way. So is this a good move in the longer term?
There is no dou...
IMF suggests that the UK economy is weakest of the developed world
A recent IMF survey suggests that the UK economy is the weakest of the developed world and the UK recovery period will be long and hard. Like so many financial institutions of late, the IMF has centred upon the weak position of the public purse where debt has grown to £600 billion and is set to crash through the £1 trillion mark over the next three years. The Labour Party claims yesterday would...
Read MoreIs deflation still a threat?
While there have been many different factors discussed with regards to the ongoing UK recession one which has disappeared from the headlines of late has been the threat of deflation. Depending upon which economic indicator you follow the UK has entered a deflationary period over the last few months although this would appear to be something of a short term blip.
Deflation is the pro...
MPs expenses back under the spotlight
There are rumours and counter rumour circulating around the House of Commons today with regards to MPs expenses and the potential for the infamous second home allowance to be withdrawn. Sir Christopher Kelly, the head of the powerful committee on standards in public life, is rumoured to be about to suggest that the second home allowance is withdrawn and MPs simply pay rent on properties they have...
Read More