2014 January 05 « Dr Alf's Blog

Seal of the U.S. Securities and Exchange Commission. (Photo credit: Wikipedia)

The Wall Street Journal fires a broadside at ineffective financial regulation in the UK. It’s a MUST READ. Check it out!

via U.K. Struggles in Fight Against Insider Trading – WSJ.com.

The article rightly cites that the UK regular, the Financial Conduct Authority (FCA), has far weaker powers than its US cousin the much feared Securities and Exchange Commission (SEC). The FCA is the renamed Financial Services Authority (FSA). The FSA was caught napping in ahead of the 2008 financial crisis, with ineffective banking regulation. Also the FSA presided over the Equitable Life collapse.

The WSJ article talks about high staff turnover at the FCA. BUT the real problem is surely that that David Cameron’s government has not had the guts to stand up against the financial services sector?

Let me ask an open question:

Do you think that the UK’s Financial Services Authority provides effective control and deterrent over the UK’s financial services sector?

Any thoughts?

Enrico Letta (Photo credit: Wikipedia)

This is an excellent, MUST READ article by Italian Prime Minister, Enrico Letta, published by Project Syndicate. Check it out!

via Enrico Letta appeals for policies that take advantage of the manufacturing sector’s potential to revitalize the European economy. – Project Syndicate.

Personally, I very much identified with this appeal by the Italian Prime Minister. Unlike in the UK, with UK Prime Minister, David Cameron, Letta understands what makes industry tick. He glosses over the problem years since 2008 and the emergency actions taken, and focuses intelligently on what needs to be done now.

As I reflected on his analysis my mind switched to the UK and what David Cameron’s government had done for UK industry. Sadly, in the UK there’s a bully on block, with the Financial Services sector, and because of the bully everybody else misses out.

A strategic approach to industrial planning is essential to regain competitiveness. The UK political classes should learn from Italy. Letta rightly recognizes the crucial importance of energy costs and the need for EC policies to regain competiveness with the likes of the US.

I struggle to understand why the European Commission is not ready to pump billions into the emerging European offshore oil and gas industry, centered in Cyprus?

Any thoughts?