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FSA will retain responsibility for financial regulation

Business secretary Lord Mandelson is today expected to confirm that financial regulation will remain with the FSA rather than transferring to the Bank of England.

In a speech to the British Bankers’ Association tonight, Mandelson will say that he does not support a “twin-peaks” system and says a stronger regulator is needed rather than a weaker one and therefore the responsibility for financial regulation will remain with the FSA.

He will say: “We need to keep prudential and conduct of business expertise in one place, in a regulator capable of seeing all parts of the picture at once. That regulator has to be the FSA.”

Mandelson’s comments come ahead of the Government’s White Paper on regulation which was originally due to be published on Wednesday but has now been pushed back to next week.

Last week, Bank of England governor Mervyn King hit out at Chancellor Alistair Darling saying he had not been consulted on the content of the White Paper.

There were reports last week that the Conservatives would give the Bank of England powers to oversee UK banks rather than leaving them with the FSA.


Morning after

The second quarter of 2009 saw a strong recovery in risk assets as fears of systemic failure in the financial system gave way to hopes that economic recovery is imminent.

S&P announce ‘record dividend low’

Standard & Poor’s (S&P), the index provider, announced yesterday that a record low companies increased their dividend during the second quarter of 2009.Of the 7,000 publicly owned companies that report dividend information to S&Ps Dividend Record, just 233 increased their dividend payment during the quarter. This represents a 48.8% drop from the 455 issues that […]

Reading the small print

As investor risk appetite has started to return, so too has interest in “riskier” investments such as emerging equity markets and smaller companies.


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