How financial crisis affected businesses in the UK economy Literature review

How financial crisis affected businesses in the UK economy - Literature review Example Thus, British faced the worst financial crisis in a number of decades; with several business operations affected, there are still aftereffects that can be seen such as the large sum of national debt. Britain also faced falling housing prices which contributed to the capital city’s despair. The Prime Minister at that time, Gordon Brown, had given a bank bailout plan which was accredited and which created a template followed by US and countries across Europe later. However, the recession was seen as persistent by the economists. The British currency had also fallen in value outside the Eurozone. Britain managed to play a major role in order to coordinate and find an international response to the financial crisis. There were G-20 meetings in April 2009 that were hosted by London, and PM Brown drafted a well-aimed and ambitious plan to fix the international financial regulations. After these meetings, the British finance ministry had to announce more bad news that the country was not breaking even on banking interventions and would probably end up losing more than $87 billion (Rayner, 2008). The financial crisis thus wiped off the country’s major banks, investors, companies, and markets. It was one of the days during the crisis when the pound suffered the worst one-day fall since 1992 on Black Wednesday. This indicated the severe global recession that was going to hit Britain and last for a very long time. The stock market had also been starting to face the shockwaves of the American corporate meltdown. Economic experts had analyzed that Halifax Bank of Scotland, Britain’s biggest mortgage lender, had lost about 13% of its value and had high risks of being immensely affected by the global financial crisis (Rayner, 2008). The royal Bank of Scotland and Barclays also had a 9% decrease in their share prices. Thus the feat grew that other major investment banks would be affected severely following the