Deposit Insurance for lenders?
The news making headlines overnight is the report in the Independent newspaper that the Financial Services Compensation Scheme has a war chest of £4.4bn for its deposit protection plan.
The GB Pound was heavily sold on almost all crosses on this revelation as the FSCS apparently had a fund worth £9bn which has reduced through payouts to depositors of collapsed credit unions. This is interesting news given that the government is considering depositor protection of up to £100’000.
German business confidence in September dropped to a 19 month low this morning as the strength of the Euro has caused caution on the part of companies in light of the current financing conditions.
The Euro saw highs in excess of 1.4100 yesterday and this is concerning given the state of the US economy and the reduced prospects for export growth.
The Bank of Japan August meeting minutes where released and provided comment on the nature of the decision not to raise rates. It showed that the swings in global financial markets were of concern.
They stated that they would adjust rates when the markets stabilise. As a result the JPY has strengthened against the US dollar.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
The GB Pound was heavily sold on almost all crosses on this revelation as the FSCS apparently had a fund worth £9bn which has reduced through payouts to depositors of collapsed credit unions. This is interesting news given that the government is considering depositor protection of up to £100’000.
German business confidence in September dropped to a 19 month low this morning as the strength of the Euro has caused caution on the part of companies in light of the current financing conditions.
The Euro saw highs in excess of 1.4100 yesterday and this is concerning given the state of the US economy and the reduced prospects for export growth.
The Bank of Japan August meeting minutes where released and provided comment on the nature of the decision not to raise rates. It showed that the swings in global financial markets were of concern.
They stated that they would adjust rates when the markets stabilise. As a result the JPY has strengthened against the US dollar.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Labels: credit crunch, euros, Sterling
posted by Wise Money @ 9:15 AM
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