Moody's believes further substantial financial losses to follow
Credit ratings agency Moody's believes that while the UK government should maintain the Triple-A rating for UK government debt there may be further movement on the ratings of some UK banks and building societies. While in total the UK financial sector has taken a hit to the tune of £110 billion since the recession began, Moody's believes there is a further £130 billion to come over the next few years. To put this into context, the UK financial sector could in the end have lost around £240 billion during the worst recession in living history.
While many bank shares and financial shares have picked up over the last few weeks there is some concern in many areas that future changes in credit ratings could have a significant impact on share prices. There is also concern that some investors appear to be taking a blue sky view of the UK economy and the UK financial sector in particular when, if Moody's is correct, more than half of all losses have yet to be crystallised.
This is perhaps the main reason why some observers believe the UK economy could be in for a "double dip" style cycle, something which would be very difficult to avoid if the forecast financial sector losses are anywhere near the amount mentioned.
Share this..
Related stories
Will payday loans become a thing of the past?
07/09/2015 A few months ago, you could not watch TV, listen to the radio or read a newspaper without noticing the large amount of payday loan adverts. Catchy jingles, puppets and C-list celebs were all used to try to tempt us into “quick and easy” money, which could be in our bank accounts “in just five minutes!” I don’t know if you have noticed, but I have begun to see less and less...
Read MoreIs Gordon Brown feeling the pressure?
At the World Economic Forum this weekend Gordon Brown found himself in a number of very difficult situations where he was being asked to clarify the UK situation in the eyes of the UK government against that of the International Monetary Fund (IMF). The situation was made worse by the fact that opposition leader David Cameron was also in attendance and more than happy to "stick the knife in" when...
Read MoreUK government renames pension initiative
The UK government made some amendments to the "Personal Accounts" pension system which has now been rebranded as the "National Employment Savings Trust" otherwise known as Nest. This is the government's initiative to try and head off the ever-growing and ever more critical pension crisis which is gripping the UK at the moment. This is a crisis that has been building for many years but which has no...
Read MoreStudents splash more cash on rent
Average rent rates for students in the UK have risen by seven per cent compared to last year, according to a new report by Accommodation for Students.Social housing website 24dash published the report findings showing that an average UK student would pay £60 per week for their digs in 2007, which is four pounds more than 2005. Yet this figure does not reflect the experience of all students, as re...
Read MoreHuman error 'costing businesses a fortune'
Businesses are losing millions to fraudsters because of human error, a survey by the Department of Trade and Industry (DTI) has revealed. The survey of 1,800 people found carelessness with passwords is the biggest risk to computer network security which criminals are taking advantage of. Just over one-third of people wrote down or stored their password or security information on their computer.Nea...
Read More