THE DAILY TELEGRAPH: The eurozone debt crisis poses the "most material and immediate threat" to the UK's financial stability, according to a report by Sir Mervyn King's Financial Policy Committee.
"Sovereign and banking strains are the most material and immediate threat," the committee, chaired by the Bank of England governor, said in its inaugural report.
The committee called for banks to improve their disclosure of sovereign and bank sector exposure and also warned that authorities needed to keep a closer eye on the explosion of "opaque" products such as exchange traded funds (ETFs), which banks increasingly use to raise funds.
It follows an overnight victory for David Cameron in preventing British taxpayers' money being used to bail out Greece.
At a European Union summit in Brussels, the Prime Minister won a fight with Angela Merkel, the German Chancellor, to keep Britain out of any new rescue package.
Germany had wanted to use money from the European Financial Stability Mechanism to bail out Greece. Britain is a contributor and has no veto on how its €11.85billion (£10.5billion) funds are used. » | Szu Ping Chan | Friday, June 24, 2011
