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.
2008 ends on a disappointing note for the banking system
It has today been revealed that many Nationwide customers are missing December salary payments which have not yet been credited to their accounts. It appears that after an "overnight processing problem" a number of accounts have not been updated with automatic debit and credit payments leaving many customers short of funds and possibly facing late payment charges for direct debits which have not b...Read More
Has the UK economy really turned the corner?
At this moment in time it feels as though the UK economy is now on the crest of a recovery with unemployment falling in the third quarter of 2009 and recent data pointing to a recovery in UK economic activity. However, sceptics believe that the recent figures which have given some investors hope for the future could soon turn about face and the UK economy could face further pressure in the first q...Read More
Join our Webchat: "A nation in denial?" 3rd July at 3pm
Log in to our finances web chat and prepare for your future.
Now more than ever is the time to think long term when it comes to managing your money, yet it seems as a nation we're short-sighted. The saving message is gradually getting through, but almost half of us are still not saving adequately and those that do save are saving more for the short term.
Women are th...
King sparks hope of April rate cut
The Bank of England could be poised to cut interest rates as early as next month, economists have predicted. It had been widely thought that the Bank would wait until May to trim the key base rate of interest with a view to curbing inflation. However, an admission from Mervyn King, the governor of the Bank of England, in an address to the Commons Select Committee that financial conditions have mad...Read More
Football match inflation 'turning fans away'
The cost of attending a football match has gone up by 21 per cent in the past three months, Virgin Money claimed today.According to the financial firm's latest Football Fans' Inflation Index, the typical supporter now spends £106.21 to see his or her team - the first time ever that the £100 barrier has been breached."Fans' Inflation" also stands far above the government's own general inflation r...Read More