Big UK Banks Could Be Wound Down in a Crisis Without Bailouts, Bank of England Finds

Britain’s biggest banks could stay open and would not need to be bailed out by the government should they collapse, the Bank of England (BoE) has found in a published assessment of their crisis-planning management on Tuesday. The UK’s top eight banks including Barclays, Lloyds, HSBC, NatWest, Santander UK, Standard Chartered, Nationwide and Virgin Money UK, were evaluated for their “resolvability,” meaning their ability to safely manager a failure without major economic impacts on the British economy. The new “resolution” rules were introduced by the BoE after the government was forced to pay-in £137 billion in public funds to safeguard the UK financial sector during the 2007/2008 Global Financial Crisis (GFC)....