Glum findings in latest FSA report

Financial markets could be more vulnerable to external shocks in 2008, the latest risk outlook published by the Financial Services Authority (FSA), the British single regulator, finds.

In the 2008 edition of its Financial Risk Outlook, the FSA said: "The operating environment for firms remains difficult and it is likely that these conditions will persist, particularly if investor confidence in some markets and financial institutions remains low."

The report identifies five so-called "priority

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