Explosive Report Warns of the Next Black Swans for U.K. Banks

An explosive report published on Wednesday by the Adam Smith Institute says the Bank of England should scrap stress tests designed to check whether U.K. banks are safe because they make them more, rather than less, vulnerable in case of a crisis. Investors should take note of this report, as it offers warnings about where the next "black swan" events could materialize.

The report is published a day before the Bank of England's September monetary policy meeting, and it likely will be an attention-getter. Governor Mark Carney is also the chair of the Financial Stability Board, an organization that promotes global financial stability and brings together senior policymakers from the G20 countries. It therefore is likely that these warnings will reverberate beyond the U.K. borders....474 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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