Lender recovery during recession the case of the HSBC Research Proposal

lender recovery during recession the case of the HSBC - Research Proposal ExampleThe sudden collapse of the Lehman Brothers also lead to the situation that banks around the world had to be bailed out and the UK banks were no exception. In 2008, the British political sympathies was squeeze to play a major role in the British banking system to save the economy. All the banks had collect toxic debts and needed cash for survival. However, their scope and potential to raise cash grew weaker by the day nevertheless as the need for cash grew stronger (Clark, 2009).The UK economy did not grow at all in the certify quarter of 2008. In a bid to partially nationalize the banks, the UK judicature had to use up 500bn of taxation 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 monetary 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 in the midst of banks.Under the grim circumstances, while RBS had to take the government financing and issue Preference Shares to the government, HSBC could keep itself from winning 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 accusive of the study isConsumers globally, and especially in the developed nations had started living beyond their means (Karsbol, 2007). Savings has dwindled and the central banks were futile to control inflation. The interest rates had been kept artificially low for too long. It was predicted by economists in 2007 that US w ould be the first country to suffer with the GDP growth turning negative. The