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The Recent Recession in the UK <ul><li>The current UK Recession can be traced back to 2007 and UK financial institutions i...
The story of the recession <ul><li>HSBC warns of Subprime losses </li></ul><ul><li>New Century goes bust </li></ul><ul><li...
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Story Of The Recession Links

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Story Of The Recession Links

  1. 1. The Recent Recession in the UK <ul><li>The current UK Recession can be traced back to 2007 and UK financial institutions involvement in the USA </li></ul><ul><li>In February 2007 UK Bank HSBC said that it had seen a 20% rise in bad debt due to problems in the sub prime market in the US </li></ul><ul><li>The sub prime market is where banks lend money to less credit worthy individuals – those more likely to default on their loans </li></ul><ul><li>In April 2007 US lender New Century Financial filed for bankruptcy </li></ul><ul><li>The Credit Crunch had begun. Financial institutions had their money tied up in loans and didn’t have enough for the day-to-day running of the business. Some went bankrupt, some taken over and some bailed out by Government </li></ul>
  2. 2. The story of the recession <ul><li>HSBC warns of Subprime losses </li></ul><ul><li>New Century goes bust </li></ul><ul><li>Credit markets freeze </li></ul><ul><li>Run on The Rock </li></ul><ul><li>Bear Stearns Rescue </li></ul><ul><li>Fannie Mae Rescue </li></ul><ul><li>Lehman Brothers goes bankrupt </li></ul><ul><li> Lloyds takes over HBOS </li></ul><ul><li>$700Bn Bailout approved by congress </li></ul><ul><li> UK Government rescues RBS & Lloyds-HBOS </li></ul><ul><li> Fed cuts key rate to near zero </li></ul><ul><li> US congress passes $787Bn stimulus </li></ul><ul><li> </li></ul><ul><li> G20 Summit in London </li></ul><ul><li> UK Budget reveals huge deficit </li></ul>

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