Written by Richard Smith Financial Expert on 26 January 2008
Here in the UK we have one of the most powerful and expensive Financial Regulators in the World, and today we have confirmation that is has failed, and failed dismally in the case of the Northern Rock.
As consumers of Financial Products you should be worried about the Regulators performance in this area, and you should be worried about what the FSA are actually doing!
My clients can be pleased that I spotted issues that the FSA missed :-
1 .Reckless Lending Policies
2.Unsustainable reliance on the Money Markets to fund it’s lending.
Now I take a keen interest in the products I recommend, and it was clear that Northern Rock was one to avoid and has been for quite a while. It’s shame the Regulators did not stop and think.
It’s about time the FSA was called to account, and it’s powers drastically restricted until there is change of management and of focus. It is not the first time it has called it wrong, Equitable Life was the most recent spectacular failure in UK Financial Regulation.
Remember when you are looking for advice in relation to your Finances seek advice from an Independent Financial Expert that takes their role and their clients Finances seriously.
The Full Story is here. >>
The comment from Vince Cable is a classic.
Richard Smith
0845 226 9106
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Written by Richard Smith Financial Expert on 24 January 2008
It’s been a while since I have provided an update here and there is good reason for that.
Firstly the Markets have been, well a little up and down (mainly down though) and now seem to have stabilised. Is there more to come? I think so as I have been saying for a while , keep an eye on those portfolios, protect yourself by having a well balanced range of Investment Managers along with a varied range of sectors. However for the not so brave “cash is king for the time being”.
Having said that the FTSE 100 index is up 4.8% today.
The so called credit crunch is not over yet, please take that as warning about your immediate plans.
Overall my thinking is that the UK Business Sector should hold up fairly well, there are some issues around returns from UK property, however with interest rates now falling in the US (panic measures) the Bank of England should follow in February. Many Mortgage Lenders are still not offering the competitive levels of lending they were some weeks back and this will continue to provide some uncertainty for those overweight in property. or those looking to sell in the short term future.
Interesting that the London Authorities have now been given permission to build more Low Cost homes to make it more affordable for those First Time Buyers in the London Area. Bottom line is that without Tax Payer subsidy there is no chance of making them really affordable. I for one will not be happy about providing any subsidy for any First Time Buyers in order to ease their problems. Getting on the Housing Ladder has never been easy, and there needs to be some focus on Prudence and Savings rather than excess and State Help. Just my view of course.
We had the announcement from the Treasury in relation to Capital Gains Tax today, seems there is now going to a 10% Band to keep Small Businesses happy and not much else. It’s still an increase in overall Taxation and still those that were originally targeted are still getting away with it.
Just proves my long held view which is that “ the more you earn the more creative you can be with your Tax Affairs and the less Income Tax you will pay” …. Cynical old me eh. But of course makes sense to me as it keeps me in work.
Links to the rest of the Capital Gains Tax Story is here.
BBC – NEWS
Soc Gen - trouble brewing here, just blame the Trader, makes sense to me at least someone has been blamed. No one accepted or carried any blame for Northern Rock we have the most powerful regulator in the World here in the UK and neither them or the Bank of England nor the UK Treasury accepts there was a failure and someone was culpable . Reminds me of the Simpsons - everytime something goes wrong Homer states “ it wasn’t me it was Bart”, fantastic!
Could this really be the reason the US Federal Reserve reduced interest rates and caused turmoil in Investment Markets worldwide – they (who ever they are) would love you to think that, however it is complete horrocks.
As always if you have any concerns about any matters mentioned in these pages, please contact me.
Richard Smith
0845 226 9106
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