Big crisis. Hard data. Here are some interesting stats on the financial crisis and beyond. This was first published in Business Strategy Review: http://bsr.london.edu/blog/post-148/index.html

1. Big crisis, hard data. Number
crunching some tough times.
© Copyright 2014 London Business School

2. From 2002 to 2007, the
amount of credit in the
United States went from
$22trn to $37trn
– a 70 per cent increase.
Source: gov.uk
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3. The rise and rise of crowdfunding. From late
2010 to the second quarter of 2013, the
three major peer-to-peer lenders in the UK –
Zopa, Rate Setter, and Funding Circle – lent
a total of £378m. In the US, the Lending
Club, founded in 2007, has originated over
$2bn in personal loans.
Sources: lendingclub.com; theodi.org
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4. In 2013, the world’s largest reinsurer,
Munich Re, predicted that from 2012 to
2020 the property-casualty insurance
market would grow by 50 per cent to
€1.85trn, and the life insurance market by
two-thirds to €3.1trn. Giving a global
insurance market pushing the
€5trn mark.
Source: munichre.com
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5. King of the Ponzi.
On 11 December 2008, FBI agents
arrested Bernie Madoff, financial adviser
and investment manager. Madoff was
charged with one count of securities
fraud. The net amount lost due to fraud is
estimated to be between $10bn and
$17bn. On 29 June 2009, Madoff was
sentenced to 150 years in prison.
Source: justice.gov
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6. When the trillion-dollar global financial
service industry misfires it causes a lot of
damage. In an effort to keep the Eurozone
together, and prop up the European banking
system, the European Union and IMF have
bailed out several nations, most notably
Greece to the tune of €246bn, with a third
tranche of funding still to come.
Source: dallasfed.org
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7. On 27 June 2013 Barclays Bank was fined just
over £290m by UK and US regulators for its
involvement in the attempted manipulation of
the Libor and Euribor interest rates. It was not
just Barclays, either. Eighteen banks were on
the panel for setting Libor. Of those banks UBS
has also been fined, and other fines may follow
as investigations continue.
Sources: bbc.co.uk; bbalibor.com
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8. £109 billion
In 2012 the financial and insurance
services sector contributed £109bn
to the UK economy (gross value
added) and accounted for over 10
per cent of total UK tax receipts.
Source: gov.uk
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9. SIX
Hedge funds have had a huge impact on the
investment world, enjoying vast growth in the 1990s.
In June 2013, the total of funds under management
was estimated at $2.4trn globally.
Now regulators in Shanghai have agreed to allow six
hedge funds from the US and the UK to raise $50m
each from Chinese institutions to invest around the
world, in a move that signals the continued opening
up of the Chinese financial markets.
Sources: dealbook.nytimes.com; towerswatson.com
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10. 1,000,000,000,000,000
QUADRILLION
That’s a one with a lot of zeros – 15 to be precise.
Add a Yen currency sign and you have the
Japanese debt milestone passed in August 2013.
That’s over 200 per cent of Japan’s annual
economic output, and has prompted a massive
financial stimulus programme, dubbed
Abenomics, aimed at reflating Japan’s economy
and improving the country’s debt ratio.
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11. $920million
Global financial services giant JP Morgan
Chase agreed to pay four regulators in the
UK and US, fines totalling $920m. The fines
relate to oversight failings as the firm
racked up $6bn plus derivative losses in
2012, known as the “London Whale” trades,
after the nickname of a trader involved.
Source: bbc.co.uk; occ.gov
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12. $14Trillion
A report by the Federal Reserve Bank of
Dallas estimates that the 2007-2009
financial crisis cost the US between
$6trn and $14trn. Or, in figures easier to
relate to, the equivalent of $50,000 to
$120,000 for every American household.
Source: dallasfed.org
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13. 2019
The Third Basel Accord (Basel III) is a
global regulatory standard on banking
capital requirements, liquidity and
leverage ratios, designed to avert a rerun
of the recent banking crisis – assuming
that it is implemented. Originally due by
2015, its full introduction has been pushed
back until 2019.
Source: bis.org
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14. 1986
A package of financial services regulatory
reforms came into effect in the UK in 1986,
following changes to the London Stock
Exchange’s rules on 27 October 1986.
Known as the Big Bang, it transformed the
global financial services industry and,
some say, was one of the main catalysts of
the financial crisis.
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15. The vital statistics from the financial crisis
and beyond were first published in Business
Strategy Review Volume 24, Issue 4, 2013.
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