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The sudden collapse of the Lehman Brothers also led to the situation that banks around the world had to be bailed out and the UK banks were no exception. In 2008, the British government was forced to play a major role in the British banking system to save the economy. All the banks had collected toxic debts and needed cash for survival. However, their scope and potential to raise cash grew weaker by the day just as the need for cash grew stronger (Clark, 2009).
The UK economy did not grow at all in the second quarter of 2008. In a bid to partially nationalize the banks, the UK government had to use up £500bn of tax payers’ money (Guardian, 2008). This became necessary to restore confidence in the sector and to provide the needed fresh capital. The government wanted to reassure the market that banks such as the Royal Bank of Scotland would survive the ongoing financial crisis. Funds were made available through the Special Liquidity Scheme announced by the government as banks were not keen to lend to each other. The government had also to underwrite lending between banks.
Under the grim circumstances, while RBS had to take the government support and issue Preference Shares to the government, HSBC could keep itself from taking funds from the government. While both the banks faced heavy debts, HSBC could survive the financial crisis without financial funding support from the UK government. HSBC had some inner strength that could help it sustain itself. To understand the core strategy and the inner strengths of HSBC, the objective of the study is:
Consumers globally, and especially in the developed nations had started living beyond their means (Karsbol, 2007). Savings has dwindled and the central banks were unable to control inflation. The interest rates had been kept artificially low for too long. It was predicted by economists in 2007 that US would be the first country to suffer with the GDP growth turning negative. The
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As one source notes in a summative manner, “The mix of tighter credit, the double hit to buying power from fewer jobs and higher prices for energy and food, and shrinking household wealth are killing demand for big ticket items and organizations. The role of the commercial bank is considered by consumer goods such as homes, cars and other discretionary purchases” (Cooper, 2008).
The increased use of technology by organizations is motivated by its advantages of efficiency, accuracy, communicability, storage, management and effectiveness of business operations (Coppola, 2006). Nonetheless, many organizations have not designed effective plans for response and recovery from possible incidences which would lead to loss of business continuity (Corrigan, 2008).
The overall business prospects were affected as a result. Companies were forced to go into cost cutting mode. This meant cuts in workforce, more pink slips, lesser salaries and lesser spending powers of the consumers. This in turn resulted in lesser business for companies.
by the organization in managing credit risk and the overall performance of the bank and how it could “Take advantage of a wealth of information, support and resources to help you make the most of international business opportunities.” (International business tools and
Cost centres in companies come under immediate scrutiny, and foremost among these cost centres is the human resources development programmes. Seen as not directly income generating, training and skills development programmes
This paper is also focused at analyzing an organization’s global performance and how the economic crisis of 2009 affected its international operations. Its performance both pre and post-recession is evaluated
Once an athlete is injured, he or she will experience a number of outcomes. In the first place, the incidence of injury forces the athlete in question to immediately cease training. It could also result in serious
Before initiation of lender liability, lenders were the ones who usually sued debtors from infringement of loan agreement. However, with the appearance of lender liability, debtors are also likely to sue lenders for the
ven though kinetic energy recovery system (KERS) is not a new concept, using flywheel for this purpose remains relatively new as the use of high voltage batteries had largely been used for the storage of recovered energy . Valid claim can be made to for the popularity of
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