Assess whether UK banks ought to be nationalised

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Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.



DECLARATION

I [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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Abstract

In this study we try to explore the concept of “Nationalsation of banks” in a holistic context. The main focus of the research is on “Nationalsation of banks ” and its relation with “UK”. The research also analyzes many aspects of “Nationalsation of banks” and tries to gauge its effect on “UK”. Finally the research describes various factors which are responsible for “Nationalsation of banks” and tries to describe the overall effect of “Nationalsation of banks” on “UK”.



Table of Contents

CHAPTER 1: INTRODUCTION1

Background of the study1

Problem Statement2

Research Aims and Objectives2

Significance of the Study4

Purpose of the study5

CHAPTER 2: LITERATURE REVIEW6

Fear of bureaucracy8

The leaders failed remain in place.16

Nationalization must combine several features.16

Enriched on the state banks21

Supervision of banks and finance23

Participating entities25

Recovery planning and ecological26

Rehabilitate utilities and taxes26

Full employment and social rights27

What safeguards?28

The state, which is causing the problem, can not be the solution29

The nationalization of banks would destroy the market economy30

CHAPTER 3: METHODOLOGY32

Research Design32

Qualitative research32

Literature Search33

CHAPTER 4: DISCUSSION AND ANALYSIS34

As nationalization will work more effectively?37

Designing intelligent set of clear criteria for the nationalization37

Synchronizing the first nationalization37

Setting clear objectives38

Decide who is responsible.38

Avoid political pressure39

Criteria for exit strategies40

A real debate42

CHAPTER 5: CONCLUSION44

REFERENCES46

Chapter 1: Introduction

The aim of this dissertation is to analyse (and critique) whether in light of the recent financial crisis, UK banks ought to be nationalised.

The recent global economic crisis had a dramatic impact upon all aspects of the UK economy and society and served to highlight the fundamental role that banking and the financial sector play in a twenty first century economy. In this respect, the collapse of the US sub-prime mortgage market acted as a catalyst for the financial maelstrom that enveloped the world and in particular the UK as far as this dissertation is concerned. The crisis saw the first run on a UK bank since the 19th century and culminated in the nationalisation or part nationalisation of a number of UK banks as well as the collapse of other erstwhile pillars of the financial sector such as Lehman Brothers. The UK Government's response to the crisis and therefore its attempt to instil the UK banking sector with a sufficient degree of rigour was to engage in a strategy of nationalisation. (OECD, 2003)

Background of the study

After a time regulating the financial services sector has been increasingly lax, the mere thought of a possible nationalization of banks in both Europe and America, is surprising. However, many banks are still flirting with the possibility of insolvency, even after rescue plans which were injected billions of dollars ...