Impact and Resolution
The impact of the crisis was deep but of short duration. This was the case both in terms of the broader economy and in those of the development of finance. In the latter case innovation in banking continued apace, even in Scotland, where the unwinding of the Ayr Bank caused severe distress in some parts. There were certain abortive attempts at stronger regulation, but the only lasting legal effects were those associated with establishing the liability of partners in case like the Ayr Bank.