Tuesday, January 6, 2009

FSA gives Northern Rock 'special treatment'

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/4142209/Northern-Rocks-future-under-scrutiny-as-government-dithers.html

"Northern Rock asked for the waiver to be extended on December 23 and the FSA has given it until April 30 to conclude its review and recapitalise – a total of nine months since the first request. A clarification is expected today. The FSA's willingness to overlook the capital shortfall may provoke claims of special treatment."

It is quite incredible. Is this yet more evidence that the Financial Services Authority may not be as independent of government as is claimed?

Monday, January 5, 2009

FSA to end short selling ban

To retain the ban would have been market manipulation of the worst kind, we need mechanisms which expose over inflated equity valuations. If the government are in denial in a bear market this is no solution to their ills. The FSA should prove without doubt that it is, as is claimed, independent of political influence, this is one example where they have shown that John McFall is not entitled to have his own way.