Is the regulatory clampdown too little too late?
As the Chancellor of the Exchequer and the Financial Services Authority (FSA) warn the city to be prepared for a serious tightening of the regulatory belt over the next few years, many people are suggesting this is all too little too late. There is also a feeling that Gordon Brown has a lot to answer for as he was Chancellor of the Exchequer and oversaw some major changes in the regulatory framework during his time at the Treasury.
While neither the Chancellor of the Exchequer nor Gordon Brown is willing to take any blame for the ongoing economic downturn many are questioning their ability to improve the regulatory system which the Labour government effectively brought in. While the government would like to brush over the troubles of the past with regards to regulations there is a feeling that a major overhaul is required which could see the Financial Services Authority become obsolete and be replaced by a "super regulator" - even though this was the title given to the FSA some time ago!
The problem now for the UK investor is that the next few weeks and months will see serious spin from the UK regulators and the UK government as they attempt to paper over the cracks which have appeared of late. However, we need action not words and motions not notions in order to re-vitalise the UK stock market and the investment environment in general.
Share this..
Related stories
What odds on the car scrappage scheme being extended?
With the UK government under intense pressure to extend the car scrappage scheme, the initial response from the UK Treasury has been fairly muted. However, what odds on the UK government coming out with a new car scrappage scheme as we approach the election?
This would appear to be the perfect opportunity for the UK government to put itself forward as the party of change and party f...
Is the Scottish economy on a knife edge?
News that the Diageo rescue plan has ultimately failed and the company will be closing down its Kilmarnock plant, although investing additional funds in other Scottish operations, is another hammer blow for the Scottish workforce which has been under significant pressure of late. Despite the fact that the Scottish executive has been very aggressive in its stance against the Diageo move, which ulti...
Read MoreStrike action continues around the UK
Refinery workers in North Lincolnshire are continuing an unofficial strike which is now entering its fourth day and involves 1200 workers. The situation at the Lindsey Oil Refinery seems to have arisen because of a sub-contractor's plans to make 51 employees redundant, which prompted a furious reaction from fellow workers. This initial action has now spread to other areas of the country and we are...
Read MoreNational Institute of Social and Economic Research issues UK report
The National Institution of Social and Economic Research (NISER) has stepped forward with yet another downbeat statement on the UK economy. They believe that the UK economy will fall by 1.5% in 2009 and unemployment could hit a high of 2.5 million by 2010 although they forecast that inflation will fall within the government's 2% target in the medium term.
It is also forecast that th...
Is Mervyn King On Probation?
As the economic crisis in the UK deepens there is a strong belief that once the economy shows any sign of recovery Mervyn King, the Governor of the Bank of England, will be shown the door. His various committees at the Bank have refused steadfastly to carry out a number of changes which the government has suggested, such as reducing interest rates to refloat the UK economy.
While t...