As the second anniversary of the bank's downfall approaches, we ask industry figures if Lehman should have been allowed to fail.
Stuart Thomson, chief market economist, Ignis Asset Management "Dans ce pays-ci, il est bon de tuer de temps en temps un admiral pour encourager les autres". Voltaire's critique of the execution of British Admiral John Byng in 1756 at the outbreak of the Seven-Year War has become a byword for punishments that are out of proportion to the crime. They underpinned US Treasury Secretary Paulson, and Fed Chairman Bernanke's, justification for allowing Lehman Brothers to fail. This miscalculation was based on past experience of non-deposit taking financial institution bankruptcies such as ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
