With the new requirements to have more capital to protect themselves against collapse, the British Bankers’ Association had predicted the “cheap money era is over”, the Guardian reported.
However, the business secretary has said the big banks are “well capitalised” and have no reason not to lend.
Cable said: “Small and medium-sized enterprises are fundamental to the recovery and to tackling unemployment. Without access to credit on reasonable terms, their contribution to the recovery risks being choked off.”
IMF warns of jobs crisis
America and Europe face the worst jobs crisis since the 1930s and risk “an explosion of social unrest” unless they tread carefully, the International Monetary Fund has warned.
Although it says a double dip is still unlikely, the International Monetary Fund has highlighted the social unrest that may be caused by increasing unemployment, the Telegraph has reported.
A report from the organisation, in conjunction with the International Labour Federation, said 30 million jobs have been lost since the crisis and global unemployment has reached 210 million.
IMF chief Dominique Strauss-Kahn said: “The Great Recession has left gaping wounds. High and long-lasting unemployment represents a risk to the stability of existing democracies.”
Auditors told to avoid conflicts of interest
The big four auditors have been urged by a city watchdog to do more to avoid conflicts of interest and scrutinise management more.
Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers were told by the Financial Reporting Council they need to be more careful when offering non-audit work to clients, according to the Financial Times.
The organisation’s Professional Oversight Board also wants to see the auditors challenging management on forecasting, impairment testing, revenue recognition and independent confirmation of claimed assets.
Union bosses plan coordinated strikes
Britain could be brought to a standstill by a coordinated series of strikes as unions their anger at Government cuts.
Speaking at the Trade Union Congress’ annual conference, union bosses have indicated they will work together for the maximum impact, according to the Daily Mail.
With the RMT, Unison and Unite all backing the proposals, a wide range of public services and transport could be affected.
Brendan Barber, general secretary of the TUC, said: “The government’s determination to drive through massive spending cuts, which will not only devastate the services we rely on, will do untold damage to our economic prospects.”