FSA warns MPs about bank bonuses
The Financial Services Authority (FSA) has this evening warned MPs that they must not "pass the buck" with regards to the regulation of bank bonuses in the future. Despite the fact that the UK government was firmly behind an increase in regulatory powers, which would effectively allow the FSA to dictate how and when bonuses were agreed, the UK government seems to be taking a step back.
There is a feeling that the UK government is concerned that the potential regulations required to control bank bonuses will in some way be challenged in the courts, potentially under the human rights act. If this was the case, and those in the city have significant legal assistance, the government would end up with "egg on its face". By effectively passing the buck to the FSA the situation would reflect badly on the FSA rather than the government if it was to fail.
This is the latest in a number of potentially damaging disputes between the government, the FSA and the Bank of England. Despite all parties involved appearing to sing from the same hymn sheet some time ago, the cracks are starting to show at the wrong time. What will happen next?
Is British Airways on the brink?
While the last few weeks have seen British Airways introduce significant cost savings, work without pay and a fundraising, there are still concerns that the group is in trouble. In a rather bizarre turnaround in the historic fight with the unions, many believe it is only the power of the union leaders that is actually stopping the vast majority of British Airways 40,000 employees from going on str...Read More
Interest rates bite house prices
Five interest rate rises in the last 12 months are beginning to rein in house prices, the latest research has said.According to Rightmove house prices rose 0.3 per cent in July, 0.5 points behind the growth experienced in June.The online property firm says that this is the lowest monthly rise its survey had recorded this year and contributed to annual house price inflation of 10.3 per cent.In June...Read More
Experts worried over new pensions guidance service
27/01/2015 Margaret Snowdon, a leading pensions expert, has claimed that the governments new pensions advice service “pensions wise” will not be properly staffed by the 6th April launch date. Snowdon, who was awarded an OBE for service to the pension industry in 2010, spoke to the BBCs Radio 4 program. She said the Citizens Advice have left it too late to ensure staff have the right level...Read More
UK banks fail to pass or todays interest rate cut
Today has seen the reopening of hostilities between the UK government and the UK financial sector with news that many of the U.K.'s leading banks are not prepared to pass on today's full 1% base rate cut. The move seems to fly in the face of recent comments from the UK government which indicated that an understanding had been reached but this does not seem to be the case.
UK government unlikely to extend VAT holiday
The VAT holiday which many people believe has assisted the UK retail sector will end on 31 December 2009 - ending hopes of an extension next year. The move was effectively confirmed with today's government budget figures which showed that £8 billion was borrowed in July, a month which is historically very strong on the tax receipt front. The UK government has already confirmed that the budget def...Read More