The motoring industry has been hit hard by the recession (as demonstrated by the cancellation of the 2010 British Motor Show) and consumers have struggled to secure the credit they need to buy a new car. But for those in a position to make a move, there has never been a better time to do a deal.
By clamping down on credit, Britain’s newly cautious banks are making collapse almost inevitable for many small to medium enterprise (SMEs) who need a financial cushion now, more than ever, as suppliers and customers struggle to pay bills as the economic downturn bites.
The Financial Services Authority (FSA) has published a blueprint for a shake-up of global banking regulations aimed at preventing a repeat of the current financial crisis. The report, authored by FSA Chairman Adair Turner, recommends an increase in banks’ minimum capital requirements, closer regulation of hedge funds as well as proposals to stop banks lending too much during boom years and measures to restrict the ability of banks to take excessive risks.
Bankers, auditors, money-market speculators and regulators all came in for criticism at the Church of England’s General Synod during a discussion on the implications of the financial crisis and the recession.