The effects of the credit crisis on the UK and US financial systems Essay

The effects of the credit crisis on the UK and US financial systems over the past two years - Essay Example f bailouts, in which major industries are saved by the government from financial ruin, after which they either can pay the government back, or become partially or completely owned. In my perspective as a consultant, I advise both governments that the situation has changed somewhat due to these bailout reactions. No explicit mention of macroeconomic factors is made, and the report focuses on policy. In the last two years, policy changes have taken place superficially, although the UK and US financial systems remain fundamentally unchanged. New public scrutiny may continue to change this trend to emphasize a more mandatory nature of releasing financial disclosure reports, thus easing anxiety. As a consultant, I would state that US and UK leaders may or may not pay close attention to disclosure and transparency in business operations. â€Å"The imploding British economy has set off deflation in key asset classes, particularly real estate. Unemployment is skyrocketing, having reached an official figure of 6.7 %, or 2.1 million jobless† (Financial, 2009, 1). The basic assumption of the current report is that the fundamental financial system has not changed in the wake of financial crisis, in either the UK or the US, when looking at the long-term rather than the short-term. The US and UK financial systems are very similar in terms of basic policy; much of US law and other systems were changed only slightly after the American Revolution, and many systems in the US retain UK and European roots, including the economy. The root of the financial systems of both countries is the commercial bank. Historically, commercial banks have been around since the beginnings of history, during the development of monetary systems in early trading between kingdoms and empires. Banking is a very old institution, and most of the commercial banking rules and regulations in place in the US, as mentioned, are actually inherited from European systems of banking from the colonial era,