Sample Essay
The Northern Rock Bank was a prestigious establishment well founded in the financial and capital market in the United Kingdom. However in the year 2007, the company fell and as a result the fall of the capital market hit the United Kingdom at an unprecedented level. The bad credit market and an unfavorable credit crunch was made apparent one of the largest mortgage lenders in the United Kingdome officially sought for support from the bank of England. As a result on December 12, 2007 the Northern Rock was “dropped from the FTSE 100 index of leading London-listed blue chips, in the biggest shake-up of the index since the dotcom crash in 2001.” (‘Timeline: Northern Rock bank crisis’, 2008)
The crisis that ensured, prompting the Northern Rock to seek support from the Bank of England was primarily due to the high risks being faced by the company. In the global market place, companies dealing with debt and management of mortgage saw less flow of funds which were casqued by the inappropriate of mortgages made by theUSmortgage companies to the subprime market affected the overall global mortgage industry and market by making a shortfall of funds. The lack of liquidity of funds made the company additionally vulnerable in a market which was facing recessionary pressured since 2006 and resulted in the crisis as depicted in the case.
These are model essays please place an order for custom essays, research papers, term papers, thesis, dissertation, case studies and book reports.
