Sunday, September 13, 2009

Lehman Brothers' obituary - Is it time to change the idiom from 'Too Big To Fail' to 'Too Big May Fail'?


The month of September marks an anniversary that markets would love to forget. The bankruptcy of Lehman Brothers that snowballed into a global financial catastrophe had several lessons to teach.

Almost years after this crisis, the US and most large economies in Europe have managed to recover from recession. Global and particularly emerging markets have again limped back to optimism. But does this mean that we have left behind the risks that surfaced a year ago? While the massive correction in real estate prices has certainly tempered greed, there is a collective opinion amongst bankers that bailing out large entities at the cost of taxpayer money is not in the best interest of the nation. The G-20 finance misters have a clear resolve to ensure that entities that put the interest of the economy at risk for their vested interests will be brought to task.
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