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Project on 2008 Financial Crisis

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Added on  2020-06-05

Project on 2008 Financial Crisis

   Added on 2020-06-05

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Business Skills - Final
Project on 2008 Financial Crisis_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK...............................................................................................................................................1Bankers bonuses were to blame for the 2008 financial crisis.....................................................1CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5
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INTRODUCTIONBusiness includes set of activities that are carried out by the human beings for earninglarge amount of profit. For running a company, there is requirement of employees who willcontribute in success of the organisation (Erkens, Hung and Matos, 2012). Employees tend tocontribute significantly when they are motivated through various awards & recognitions.Enterprise should make strategy regarding payment of bonus or incentive after analysingbusiness growth in future. This project is based on “Bankers bonuses were to blame for the 2008financial crisis”; which emphasizes on losses bearing capacity of bankers in the UnitedKingdom. Bankers bonuses were to blame for the 2008 financial crisisIn United Kingdom, chairman of the Financial Services Authority claimed that financialcrisis happened just because of having inappropriate incentive structure while US Financialinquiry commission stated that this issue arose because corporate governance was not good andbased on short term profits. A brief history about crisis 2008This issue can also be known as a global financial crisis which is the worst scenariofaced at international level. . In the UK, mostly banks have started to do partnership which wasowned by senior staff and with the lending risk held on balance sheet.. With increasinginternational relations; banking units had started selling loans to foreign countries. Some partnersthought that if it is going to invite public then it has to hire more wage slaves; but bankers startedprofit sharing bargains with their new stockholders with ensuring them they will get betterrewards in future (Marazzi, 2011). In this commitment, main problem was that bankers were only concerned about attainingtheir own annual bonus rather than focusing on building long term prosperity for the bank itself.Because of this behaviour, financial crisis 2008/09 has occurred in the United Kingdom. After conducting analysis by UK financial sector, this problem reveals some importantchanges in their structure and complexity. If any company wants to give rewards to theiremployees then it should analyse all potential risks as well as return on assets. In this context,government has made some rules and regulations which should be followed by every enterprisewhile giving bonus. From the report, it can be said that Global Investment bank was criticized1
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