Self Study

Summary of Current Global Financial Crisis

24 oct

At the present time the world is facing a big financial crisis. It has affected the total global economy. Former Federal Reserve chairman Alan Greenspan has stated that the recent global financial crisis is 'like a tsunami'. Actually he is right because recently only for that reason there are few top establish bank and financial investment company already collapse in USA, UK and other country in the world.

This crisis has affected all business. US Airways and Air France-KLM have both reported that there share losses due to the current economic slowdown. US Airways has lost $865m (£537m) and shares fell over 14%. Meanwhile, European airline Air France-KLM's shares fell over 11% and this is the lowest level in over last three years.

Banks has biggest affected victim of this crisis. According Mervyn King, governor; Bank of England, the UK banking sector had been close to collapse. All the UK bank like RBS, Lloyds TSB, Halifax etc. are in a big trouble because of this financial crisis. I am not also expecting that the banks will turn around very quickly.

Small firm’s might be destroyed by this financial crises. Many firms have said that they are in a very bad condition for this crisis. On the other hand the BBA chief executive Angela Knight said that the UK banking industry has always been and remains a strong supporter of small businesses. May be the banks want to help where they can, but banks are also facing difficult conditions of their own. So, how they can help them, it is a big question. However, banks are working very hard and actively in this crisis period for the UK economy.

Reference:

· www.bbc.co.uk (Viewed: 23-10-08).
· BBC News Channel (Viewed: 23-10-08).