What did happen to the UK banks during the global financial crisis?
In the United Kingdom as more banks were being helped by the government or being bought out by other banks, for example, the government bailed out Bradford and Bingley which then got bought out by Santander Group. Then the Government had to partially nationalize the struggling Royal Bank of Scotland Group; they had a stake in the bank at one stage of 84%. Not all of the United Kingdom banks were nationalized but they needed to raise capital. The final bailout was given to the Lloyds Banking Group who were given a 43% stake after buying the failing HBOS group; this prevented them from going into bankruptcy. The knock on effect of this, was seen across Europe as in several different countries governments needed to take action to save their banks and in some cases them staying within the Eurozone. Banking industry reforms have since taken place to make the financial system more stable and secure. On the more positive side, some of the United Kingdom banks that were bailed out back during the crisis have now repaid the government, employment has risen and house process have risen again. However, steps have been taken to prevent some of the additional causes (the Northern Rock scenario) of the crisis happening again and to give the public assurances regarding their savings.