The Bank of England estimates that the world’s financial sector has now lost £1.8 trillion as a result of the ongoing credit crisis.

The Bank of England estimates that the world’s financial sector has now lost £1.8 trillion as a result of the ongoing credit crisis, with global taxpayers spending £5 trillion to shore up the same institutions.

In a stark warning that UK banks could now face stricter measures to avoid a repeat of the current credit crisis, which has seen Royal Bank of Scotland, HBOS and Lloyds TSB getting £37 billion of state aid, the BoE said in its latest bi-annual Financial Stability Report (FSR), that there may be “a need for a fundamental rethink of how to safeguard against systemic risk”.

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