View Point: UK Banking Industry UK’s banking sector, following the US and Japan, is the world’s third largest and considered foremost in terms of: efficiency, dynamism and return on capital. It services 95% of the population with about 3.5% of UK’s total workforce - over a million workers. The decade ending 2005 witnessed a surge of three folds in assets to €5526 billion, lending and deposits more than two fold to €3284 billion and €4984 respectively. The financial sector’s productivity is growing
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Grynszpan – 212811618 Xueyan wu - 212828380 INTRODUCTION Mortgage Backed Securities Lack of Regulations in the Banking System Lack of Regulations in the Credit Rating Agencies Subprime Mortgages Financial Crisis of 2007-2009 Lack of Regulations of over-thecounter derivatives Introduction to the Financial Crisis Causes of the Financial Crisis Reforms introduced International response Conclusion Cause: Subprime Mortgage - Housing prices were on the rise à More difficult for
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her company and took out an insurance policy in her name to cover the goods against fire and theft. After burglars broke into the premises of ‘Bling Bling Pty Ltd’ and stole stock valued at $500,000, Good Luck Ltd refused Amy’s claims for the stolen stock at ‘Bling Bling Pty Ltd’. Issue: Whether Sue can enforce the claim against Good Luck Ltd? Relevant case: In the case of Macaura v Nothern Assurance Co Ltd (1925), Mr. Macaura sold his company and took out an insurance policy in his name to
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take responsibility for its new role in the international economy. Germany, having unsuccessfully challenged the Anglo Saxon powers, refused to acknowledge its defeat. The easiest way to see the imbalance is through the international movement of capital. There were many reasons why this imbalance was allowed to grow over the postwar decade, and one of the
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beneficial for an economy’s long-term prosperity. In 2008 the United States government officials foreseeing an economic meltdown implemented different strategies to stimulate the financial system, with the Treasury and Federal Reserve Deposit Insurance Corporation all working together to try to elevate the crisis. One of the measures taken to combat the perceived threat of an economic recession was the implementation of an expansionary fiscal
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Global Financial Crisis: The 2007–2012 global financial crisis, also known as the Global Financial Crisis (GFC), late-2000s financial crisis or the second "Great Recession", is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s.[1] It resulted in the collapse of large financial institutions, the bailout of banks by national governments and downturns in stock markets around the world. In many areas, the housing market also suffered, resulting in
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“Great Recession” applies to both the U.S. recession – officially lasting from December 2007 to June 2009 – and the ensuing global recession in 2009. The economic slump began when the U.S. housing market went from boom to bust and large amounts of mortgage-backed securities and derivatives lost significant value. The Great Recession officially lasted from December 2007 to June 2009 began with the bursting of an 8 trillion dollar housing bubble. The resulting loss of wealth led to
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closures of these banks, jobs were lost; and the economy has suffered greatly. The banking crisis of 2007 has been considered the largest since the Great Depression. Many researchers, policymakers, economists, and other individuals blame the subprime mortgage market and its collapse for triggering the U.S crisis; many also wonder how such a relatively small market as subprime could cause so much trouble around in the U.S, especially financial institutions that did not get involved with subprime lending
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CHAPTER 3: The Role of Financial Intermediaries and Financial Markets FOCUS OF THE CHAPTER This chapter provides an analysis of the roles and importance of financial institutions and financial markets, two important parts of the financial system. A broad classification of Canadian financial institutions is presented with an historical overview. Some basic classifications of financial markets are described. The chapter ends with an evaluation of the importance of the financial system to the
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TERMINOLOGY 1. Option: In finance, an option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction. • American Option: American option is the option that can be exercised anytime during its life. The majority of exchange-traded
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