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.
Trinity Mirror closes final salary pension scheme
Trinity Mirror, the UK newspaper conglomerate, has revealed plans to close its final salary pension scheme to existing members. The company took the decision to close the scheme to new members back in 2002 as the funding deficit on the scheme began to grow. However, since 2001 the deficit on the final salary pension scheme has increased from a manageable £37 million to £275 million and the press...Read More
UK base rate cut by 0.5%
As expected the MPC has today reduced the UK base rate by 0.5% to a 314 year low of 1.5%. The move was pretty much as expected on the currency markets with speculation about a 0.5% reduction intensifying late last night ahead of the meeting. However, even now that UK rates are lower than they have been in the last 300 years there is intense speculation of further reductions in the short term. But...Read More
Do We Really Need The Stock Market?
To many people the stock market seems to be a play area for rich individuals and institutions and it does not even register with the majority of the UK population. So what role does the stock market play and is it really needed?
Only those who have no dealings with or do not understand the stock market would even ask that question. The market is vital to both the business sector i...
When did you last review your personal pension?
Company pension schemes and personal pension schemes are two subjects which we are set to hear more about in the short, medium and longer term as the cost of living continues to rise and the UK state pension comes under yet more pressure. So when was the last time you reviewed your own personal pension?
While more people than ever before now have personal pension arrangements in pla...
CBI demands introduction of a job suspension scheme
The Confederation of British Industry (CBI) has today stepped up its campaign for government assistance in the employment market. Introducing a potentially revolutionary idea to the UK employment market, the CBI wants an alternative to redundancy scheme introduced which would see companies are allowed to suspend employee's contracts for up to 6 months.
During this period, employees...