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.
Is internal government bickering hampering a recovery in the UK?
As the headlines with regards to the UK government continue to worsen, with rumours of infighting and leadership battles, many are now growing concerned about the short-term impact this may have on the UK economy. Despite assurances from those at the top of the UK government, there is no doubt that much time and effort is being spent discussing and countering claims of unrest within the government...Read More
Government U-turn on post offices
The government has intentionally leaked plans for the UK Post Office network to the press this week amid signs that a massive U-turn is underway. After initially looking to downsize the Post Office, sell-off the more profitable areas and withdraw from many local communities, Lord Mandelson is believed to be pushing ahead with new plans to make the UK Post Office network a "mini community bank". So...Read More
Why is the UK energy industry dominated by overseas suppliers?
Despite the UK government spending billions upon billions of pounds trying to convert UK consumers to "green energy" it would appear that they have taken their eye off the ball with regards to gas supply in the UK. Today's revelation that over 50% of UK gas demand will be provided by overseas suppliers would suggest that investment in the UK gas industry has been neglected over the last few years....Read More
Wetherspoon's announces record sales
Pub group JD Wetherspoon has announced record sales with turnover up 1.2% in the year to 26 July 2009. This is a sector which has been hit very hard by the UK recession but JD Wetherspoon, which operates at the value end of the market, has been very proactive in introducing breakfast and other meals to the mix. It looks as though the attraction of cheap food and cheap drink brought together under...Read More
Birmingham the 'shopaholic capital' of Britain
Women from Birmingham spend an average £1,813.56 each year on fashion purchases, a new study has shown. Research into spending habits from price comparison website uSwitch has named Birmingham females as the worst shopaholics in the UK.Researchers claim that 765,642 British women can be classed as shopaholics, with almost half a million admitting to slipping clothing acquisitions onto a partner's...Read More