FSA failed savers, claims ex-Singer boss.

That was one of the headlines in the business section of the Daily Telegraph published yesterday. The former chief executive of UK bank Singer and Friedlander ,Tony Shearer said, that the Financial Services Authority (FSA), one of the creations of our great leader Gordon Brown, ignored his concerns about the competence of the Icelandic buyers Kaupthing. Shearer said the Icelandic businessmen were not fit and proper, which is quite an insult in the staid (??) world of banking.

I suppose everyone understands that the FSA really made a horlicks in the supervision of the British banking sector but it is still in denial. In the case of Singer and Friedlander, Kaupthing acquired the British bank in 2005. This followed the strategic need for a new customer base for deposits, since the Icelandic group had run out of savers amongst its domestic population. This amounts to 300,000 people, a similar number to the population of Coventry.
In hindsight the FSA could have been less welcoming to the Icelandic raiders. Perhaps the Bank of England could have done better and it looks like it is making a pitch for future regulation of banks.

Sorry for the recent break in blogs!! Gordon Brown!

Dear Gordon Brown, sorry for the recent break in the blogs. I know you enjoy being Prime Minister of England but I think you should resign our to patriotic duty. You had to jettison your really big pal Damian McBride and you might have to let go your old mucker Alistair Darling. Having to release Pakistani nationals after you described them as participating in a major terrorist plot seems to show that you have forgotten the first rules of dealing with the police and with the Home Office (Jacqui Smith!!). Namely, be very careful because of their stunning incompetence.

I am sure MPs such as Frank Field and the Milibands are sharpening their knives. Even Alan Johnson must think that he can't be any worse than you as a prime minister.
Do you want to give them the credit, just resign. Quite a few of the Labour Party think you are off your head anyway. Gordon, you have gone global but you have forgotten to go local. There was a BBC news clip this week about the dreadful situation in Merthyr. I thought New Labour was going to sort this out. You have managed to abandon your party's heartlands.

Gordon, you have killed the economic goose of England. We could never afford Scotland and Wales (never mind Northern Ireland, perhaps the most subsidised place in the world) even in the good times. So those future public expenditure cuts might mean Trident. However, more likely they will be the much vaunted Scottish university financing system and the massive local councils in Wales. These areas could easily be
pruned.

So to conclude, dear Gordon, you had your chance. Your unique selling point was that you were going to run the economy so competently so that there would be no problem in financing extra expenditure on schools and hospitals (all those PFI hospitals in
Merseyside!!) Now, to keep the show on the road you are expecting Johnny Foreigner to buy shed loads of gilts. Dream on!!

Are we experiencing a bear market rally?

Suddenly, the stock markets either side of the pond have perked up. There might be some of those green shoots of recovery but are we experiencing a bear market rally? The UK property market seems a bit perkier in terms of anecdotal evidence and of the Nationwide Building Society positive numbers for the month of
March.
The Bank of England governor Mervyn King seems to be in a bit of a quandary about quantitative easing and after using it to buy a few gilts. The governor has acknowledged that inflation is too high. In his column in the Sunday Telegraph, pundit Liam Halligan notes the Bank of England's own pension scheme is 70 pct invested in index-linked instruments compared with the previous 25 pct.
The British government still has to rescue the car industry, which means giving money to foreign manufacturers. This compares with the rise in car sales in Germany helped by the country's scrappage incentives. The British government has been traditionally anti the motorist and seemssto want cars to be sold from the forecourt so they could sit on the drive.