The Financial Stability Report published bi-annually by the Bank of England provides an analysis of the market turmoil of recent weeks along with much data in graphical form. The extraordinary conditions are all too clear with $ Libor reaching more than 360bp over official rates and 200bp in the case of sterling. The flow of cash out of the interbank market into government paper drove US treasury bill yields towards, and briefly below, zero.
The European Commission is taking steps on both accounting and ratings agencies in a bid to restore confidence in the financial system. Rating agencies face a mandatory regime replacing a voluntary code of conduct.
The changes introduced by the Companies Act 2006, which will be fully implemented by next October, will enable companies to achieve cost savings in addition to encouraging “good boardroom behaviour”, claims PricewaterhouseCoopers Legal LLP.
