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.
Hitachi Nuclear deal ‘could create 12,000 UK Jobs’
A deal by Japanese firm, Hitachi, which has secured the nuclear project ‘Horizon’ at a cost of £700m, will create as many as 12,000 jobs within the UK. Horizon was a venture originally planned by two German companies, E.ON and RWE, but doubt was cast over it last March when it was put up for sale following the meltdown of the nuclear reactors in Japan, causing the companies to pull out of...Read More
Is the Eurozone recovery now wobbling?
Today we saw confirmation that the recovery in the Eurozone economy may not be as robust and strong as many people had assumed. Unemployment in the third quarter in the Eurozone fell by 0.5% quarter on quarter and by 2.1% year on year. There was also a reduction in industrial output of 0.6% month on month and 11.1% year-on-year. So what does this mean for the future of the Eurozone economy? The...Read More
Benefit thieves taking UK government to the cleaners
It has been revealed over the last few days that police have been monitoring a gang claiming tax benefits for five fictitious children with benefits believed to be in the hundreds of thousands of pounds. This is not an isolated case as the UK authorities seem to be unearthing enormous fraud gangs on a regular basis, thieves who are effectively taking millions upon millions of pounds from the UK be...Read More
Massive mutual merger confirmed for August
The merger between Britannia Building Society and the Co-operative is set to be completed on 1 August after members from both parties voted in favour of the deal. This will see a combined group boasting 9 million customers, 12,000 employees and over £70 billion of assets. The new operation will also have a branch network of over 300 and has the potential to attack and damage more traditional UK b...Read More
The £24 million cost of EU integration
It has been revealed that 50,000 children living outside of the UK are receiving child benefits funded by the UK taxpayer. While there have been no figures released with regards to the overall cost it is estimated the figure is in the region of £24 million based upon the £20 a week payment for the first child and £13.20 for additional children. So where is all the money going?