Tiner warns banks of cross-market correlation risk

John Tiner, chief executive of the UK Financial Services Authority, has warned UK banks that their stress testing may not be adequate against a widespread downturn.

Speaking at the FSA's annual public meeting, Tiner warned that the markets are set for problems soon. "There are signs that the environment for regulated firms may become more challenging in the short and medium term," he said, predicting "an increased risk of sharp, and possibly coincident, corrections in a number of asset classes and areas".

This could be a problem for UK companies, he said