Globalization

Financial institutes

  • Financial institutes important actors in the economy à bank, building societies, insurance firms, money markets, etc.
  • Despite competition and occasional unemployment à London has retained its status as a global financial centre

High street banks:

The bank of London = Britain’s central bank. Its purpose is to control inflation

Central clearing banks (most important: HSBC, Lloyds TSB, the Royal bank of Scotland, Barclays) = provides with current and accounts, loans and financial advice

Long-established merchant banks:

Advice and finance to commercial and industrial businesses à advise on takeovers and merges; different services for individuals and companies

The London Stock Exchange:

The Stock Exchange revolution 1986:
  • Greater freedom of operation:
    • New members allowed
    • Financial dealers given greater power of dealing à competition increased
    • Some companies to ambitious à suffered from the world stock market crash in 1987 ß since 1987 financial transactions organized through a computer system = automates the trading process
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Gordon brown talks about the new world order:
http://www.youtube.com/watch?v=Uv5cqh26CC0