Bank of England says UK lost £7trn in credit crunch - papers

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The financial crisis has cost the British economy up to £7.4trn in lost output, according to the Bank of England.

Andrew Haldane, the Bank's executive director for financial stability, said taking into account the permanent damage done to the productive potential of nations across the world - as well as the immediate costs of supporting the banks and the recession - there is an output loss equivalent to between $60trn and $200trn for the world economy and between £1.8trn and £7.4trn for the UK. He put the hidden cost to the taxpayer of the implicit support offered to the big UK banks at more than £50bn, reports The Independent. Mr Haldane advocated new structural controls on the banks, a policy a...

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