Factors leading to the collapse of Northern Rock and their current Dissertation

Factors leading to the collapse of Northern Rock and their current position - Dissertation Example After that it started to adapt aggressive steps in order to move high. The slowdown in the housing price inflation and an increase in the interest rate, Northern Rock issued warning regarding the profit of the bank. Soon the liquidity of the bank started to dry up and eventually pushed it towards collapse. The study tries to find out the factors that are responsible for the collapse of such a huge bank that was showing good business. At the same time it also focuses on the present condition of the bank. Table of Contents Abstract 2 Table of Contents 3 Chapter 1: Introduction 4 Chapter 2: Collapse of Northern Rock 5 Before Collapse 5 Reasons behind its collapse 7 Current Position 11 Chapter 3: Conclusion 12 REFERENCES 14 Chapter 1: Introduction The subprime mortgage financial crisis caused a steep rise in the subprime mortgage market of United States that started in the fall of year 2006 and became the cause of global financial crisis on July 2007. The newly-popular adjustable rate mo rtgages suffered an increase in the monthly payment due to the rising interest rates. Moreover the demise of the housing bubble caused the value of the property to suffer major decline leaving the house owners unable to meet their financial commitment and the leaders without any means of their losses. This financial crisis resulted into severe credit crunch, intimidating the solvency of many marginal banks and other financial institutions (Jansen, Beulig and Linsmann, 2010). Northern Rock was one of such banks that were severely hit by the waves of financial crisis. Among the entire spill over effects of the subprime crisis in US, the collapse of Northern Rock was the first in UK and was considered to be the most visible and perturbing for the authority of UK. This collapse exposed the tension that the central banks need to take some more stringent steps in order to enhance the liquidity support facilities. It also highlighted on the inherent difficulties that lay with the tripartite arrangements made to deal with the banking crisis, the deficiencies in the banking supervision and regulation in UK and the flaws evident in the deposit protection arrangement of UK (Hall, 2008). It also revealed the fragility of the banking system of UK, by shaking the complacency of the regulators, politicians and bankers, undermining the confidence of the general public on the banking system of UK and creating a calamitous effect on the economy of UK. All these reasons make it important to understand the situation that led to the collapse of Northern Rock. Hence the study highlights on the causes of collapse of Northern Rock and its current position. Chapter 2: Collapse of Northern Rock Before Collapse Northern Rock was the eighth largest bank of United Kingdom (UK). At the beginning of the year 2007 it was riding high and in June 2007, the share prices of the bank were seen to touch 1,000p and at the same time it announced that it has sold mortgage worth ?10.7bn, which was 47% higher than the figures of 2006. After it was demutualised in the year 1997, Northern Rock started growing rapidly in order to become the fifth largest mortgage lender of UK. The aggressive expansion of Northern Rock was funded by heavy reliance on unsecured and secured borrowings. About 50% of the funding came from securitization through a special purpose vehicle called Granite. The funds and retail deposits were seen to fall from 62.7% in

The Evolution of Jazz Essay Example | Topics and Well Written Essays - 1000 words

The Evolution of Jazz - Essay Example This practice ended before the slaves were emancipated, but remains a contributing factor to the music. African music, combined with European influences, resulted in jazz. Creoles were not free from French and Spanish rule until the Louisiana Purchase was signed in 1803. They came from the Caribbean and were an educated, upper class group, some of whom played at the Opera House. Segregation laws were enforced in 1894 and the creoles were pushed to the poor side of the city. Their musical styles mixed and brought jazz to life. Numerous Creoles, along with African-Americans who were recently freed from slavery, often made their way by performing. Racial segregation was rampant, but so "was the powerful and constant desire of the American Negro to make his mark, to belong, to participate effectively in a predominantly white culture. And music was one of the few avenues to fame and fortune" (Stearns, 55). African-Americans commonly joined vaudeville and minstrel shows, employed as musicians, magicians, comedians, acrobats, actors, and dancers - sometimes burlesque. Others played music on the piano, which came to be called ragtime, in bars and brothels. Storyville of New Orleans became the epicenter of early jazz. Then brasses, drums, and reeds, played by marching bands at funerals, became traditional jazz instruments. Self-taught bands commonly performed in traveling vaudeville shows, which spread the music farther both North and West of Louisiana. "By 1920, according to Frederic Ramsey, Jr., there were over forty outstanding jazzmen from New Orleans to Chicago. Looking back, it now seems almost like a family affair. And in a sense, it was; for the general public and even white jazzmen knew almost nothing about it" (Stearns, 164). That year, the Jazz Age was just beginning, and not everyone was happy about it. Prohibition began that year. An onslaught of speakeasies opened and jazz was a major part of the upbeat entertainment inside of them. Soon enough, jazz was viewed as a threat to old-fashioned values and considered immoral by many. The music lasted through controversy; " the 'twenties were the crucial years during which jazz established itself for better or for worse. Certain patterns emerged during these years, patterns which help explain how jazz grew and spread, and hence the nature of the music. Of all the technological advances - the phonograph, radio, microphone, talking picture, juke-box, and television - which hastened and shaped the spread of jazz, the phonograph is by far the most important single factor" (Stearns, 190). Caucasians helped to popularize the genre when they adapted it themselves, but they couldn't take over it. Though it took time for African-American musicians to take advantage of the phonograph, the opportunity finally arrived in 1922. Kid Ory's Original Creole Jazz Band became the first African-American group to record their music. Over twenty subgenres developed in the decades to follow. Swing, bebop, dixieland, gypsy, cool, and soul jazz are only a handful of them. Performers chose one and made their marks. "Battles of music, once known as 'carving contests', have occurred frequently in the history of jazz... The first and archetypical legend in jazz is the life of Charles 'Buddy' Bolden, who never lost a carving contest. He was almost eight years old before the dances at Congo Square