London and The Financial Crisis
"Debt and The City"
A two day tour of the world of banking - revealing how the financial crisis came about, and what comes next.
Dates: We run these tours frequently. Call for our next dates.
The impact of the banking crisis has affected all of us, as our national debt has soared, credit has run dry and jobs are cut. Political Tours is offering people the chance to get to grips with the causes of those events by providing access to the institutions and banks at the heart of the recent turmoil.
We look at the impact of debt on ordinary lives, and then trace its origins within the City of London. We look at the evolution of modern banking from Big Bang and deregulation in the 1980′s to the zenith of “casino-banking” in 2007. We take a crash course in so called financial weapons of mass destruction – the derivative products that ultimately brought the banks to their knees. Bankers and analysts will be on hand to guide participants. Throughout the two days the group will be able to put questions to those who have been dealing with the largest financial crisis in almost a century.
Debt is the key to understanding the present crisis; we look at different ways debt has grown in our society, and then trace how it came about. We start off in Mile End, East London, one of the poorest areas in Britain despite its proximity to the City – we look at families affected by debt. A short walk away we look at a major construction project that came to halt following the credit crunch – part of a debt fueled credit boom.
Rolling back the clock: Justin Urquhart-Stewart, a leading investment banker and city commentator leads a guided tour of the city as it used to be. Debt crises are nothing new – we look at its role in banking through the ages, leading up to the Big Bang – the event that opened up the city to increased competition and deregulation. Followed by lunch in the city.
Big Bang Deregulation helped fuel the growth in complex financial products. A leading city investment firm explains the growth in derivatives, and securitisation. From CDO’s to CDS’s and CDO’s Squared we get a crash course in the financial weapons of mass-destruction.
Trading Debt We visit a major trading floor and learn how debt is traded today.
The Crash We learn from reporters and city insiders about the collapse of Lehman Brothers, and Northern Rock. The common denominator in both was securitisation; bonds linked to mortgages that began to turn sour in the US. Trust evaporates over night, heralding an economic downturn that has lasted half a decade.
The Regulators and Politicians We hear from the politicians who tried to hold the bankers to account, and the regulators – the FSA and The Bank of England – on how they handled the crisis. Lunch in the city with figures who were at the centre of the crisis.
What Next? While the taxpayer was able to bail the banks out last time, the public purse is now empty, and there is no room for a second bail out. We examine the measures required to prevent another banking crisis. How can financial institutions become safer, and what can be done to improve the broader regulatory framework. Lastly what would happen if there was another crisis. One of Britain’s leading accountancy firms gives its view.