Business

British Wisdom
by Claudia Sonea

This year mankind has seen many changes taking place, starting with the first black American President and an alarming economic crisis that spread like a plague. The two events are not randomly chosen as both have marked this year and have as country of origin USA. Due to an irresponsible banking system, an irrational spending and corruption the American financial system went from hero to zero generating a chain reaction with the collapse of other economies as well. Now, everyone is waiting for a solution from US and the new President who promised so much before elections and did so little afterwards. In the wake of the crisis, Obama administration seemed to have a feeble solution that would put an end to the collapse of banks and to the big wave of bankruptcies. Nonetheless, the stimulus package proved to be a bad idea as AIG spent the bailout money irresponsibly and then time had to be wasted on hearings and other useless debates! and complains, which did not bring back taxpayers’ money. US failed to keep up the flag of leadership and in return is divided by a permanent fight between Democrats and Republicans who forget that the country is going down and it will hit rock bottom at this rate. Surprising measures came from a country that doesn’t face only the threat posed by recession, but also that of devolution: the United Kingdom of Great Britain and Northern Ireland. British banks also received a bail out package from the taxpayers’ money, yet the money will be recoup not from premiums and other taxes, but from selling parts of their businesses. As it is, the British government assured that the taxpayers’ money will be retrieved, while the competition on the banking market will be restored after the advantage offered to banks like Both Lloyds Banking Group and RBS through the state aid. The branches that the banks will sell are supposed to lead to the! creation of another three banks that will boost competition a! nd diver sify the offer of banking services. Bravo to them!

related story (sgx15782): http://news.yahoo.com/s/ap/20091102/ap_on_bi_ge/eu_britain_b...

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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posted by Blog TechSource @ 3:36 PM