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Financial Crisis of 2008 (view source)
Revision as of 17:23, November 9, 2008
, 17:23, November 9, 2008China
On October 13, Britain announced it would spend £50 billion ($85 billion) to nationalize two of the five largest banks, HBOS (Halifax Bank of Scotland) and RBS (Royal Bank of Scotland), while taking partial ownership of a third, Lloyds TSB. A fourth, Barclays will remain private if it can raise an additional £7 billion. The fifth, HSBC is based in Hong Kong and will remain private.<ref>"Financial crisis: HBOS and RBS 'to be nationalised' in £50 billion state intervention," [http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3185120/Financial-crisis-HBOS-and-RBS-to-be-nationalised-in-50-billion-state-intervention.html?source=EMC-new_12102008 London ''Telegraph'' Oct 13, 2008] The existing stockholders were not bought out. They will continue to hold shares in the banks, but they will be outvoted by the new stock owned by the government.</ref>
On October 13, Britain announced it would spend £50 billion ($85 billion) to nationalize two of the five largest banks, HBOS (Halifax Bank of Scotland) and RBS (Royal Bank of Scotland), while taking partial ownership of a third, Lloyds TSB. A fourth, Barclays will remain private if it can raise an additional £7 billion. The fifth, HSBC is based in Hong Kong and will remain private.<ref>"Financial crisis: HBOS and RBS 'to be nationalised' in £50 billion state intervention," [http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3185120/Financial-crisis-HBOS-and-RBS-to-be-nationalised-in-50-billion-state-intervention.html?source=EMC-new_12102008 London ''Telegraph'' Oct 13, 2008] The existing stockholders were not bought out. They will continue to hold shares in the banks, but they will be outvoted by the new stock owned by the government.</ref>
===Asia===
The crisis swept across the Middle East and Asia as well, with South Korea especially hard hit. China, which had been the world's major growth machine in recent years, seemed to slow down. In November China's government announced it would spend 4 trillion yuan ($586 billion) through the end of 2010 to stimulate its economy. It specifically targeted people's livelihood in an effort to offset the impact of slowing global demand for its exports and unlock the spending power of its vast population.
===$800 billion bailout ===
===$800 billion bailout ===