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

Seal of the U.S. Securities and Exchange Commi...

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?

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Dr Alf’s Two Cents: Austerity Zombie Banks and Roadblocks to Investment in Soutern Europe

One of a number of posters created by the Econ...

One of a number of posters created by the Economic Cooperation Administration to promote the Marshall Plan in Europe (Photo credit: Wikipedia)

This is an excellent MUST READ article published in the Wall Street Journal.

Austerity’s Not the Only Burden in Europe – WSJ.com.

For me, it confirms that the troika of the IMF, ECB, and EC have been myopic in dealing with the financial crisis in Southern Europe. Let’s recap on the context. Austerity is reducing demand and putting more people out of work, driving record numbers to suicide. Meanwhile, the banks in Southern Europe don’t or can’t lend to small businesses, the backbone of the economy. Clearly, massive investment is required into top-quality, properly costed and risk-assessed infrastructure projects to kick-start growth based on Keynesian principles. These national infrastructure projects will need to be financed by a new initiative, similar to the Marshall Plan that kick-started Germany’s growth after WWII.

Any thoughts?

 

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