FSA warns lenders: prepare for slump

Clive Briault, FSA managing director of retail markets, says borrowers are “vulnerable” and “ill-equipped” to cope with a weaker economic environment. Speaking at the Building Association Society (BAS) annual conference today, Briault also says it is “vitally important” firms recognise the parallels between the sub-prime markets in the UK and US. Briault says lenders must always be prepared for the downside of the housing market. “Current market conditions are good and the most likely outlook is for these to continue,” he says. “But all lenders, including building societies, should ensur...