We spoke to experts about their take on the current global banking issues, and how worried people should be
TROUBLE IN AMERICA, talks of “contagion”, and news stories about the strength of Europe’s banking system may be giving some people a bad case of déjà vu this week.
“If you think about it as though it was Supervalu taking over Centra, that wouldn’t cause us to worry here in Ireland, it’s sort of like that.” While these bank failures have placed the global financial system under additional strain at a time when it is trying to combat inflation rates, Lucey said that the main difference between now and 2008 is that regulators have learned a lot of lessons.“They have a better toolkit to combat any potential crisis before it happens, and they seem a lot more willing to use it as well from the intervention we’ve seen.
”Of course, if the entire system has been gorging itself, that is a very different situation, and that’s what happened in 2008. If a crisis comes now it will be a banking crisis, and it will be very different to the crash,” Lucey said.Other economic experts and figures within the financial sector have also spoken of a “slow-rolling crisis” due to a tightening of monetary policy, including Larry Fink, the head of the Blackrock US investment group.
“One lesson that has clearly been learned is that of swift intervention. A key distinction between now and what happened in 2008 is that capitals are already flowing to prevent a panic in the markets, but that raises another question, should we be doing this? “Otherwise, we are back to 2008, where a lot of money was injected into the system, banks didn’t use it for what it was supposed to be used for, they took a high level of risk, and then the central banks bailed them out,” Morales said.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Credit Suisse: Global central banks take action after ‘emergency rescue’The world's six largest central banks have taken action to shore up the financial system amid fears over the ‘emergency rescue’ of CreditSuisse.
Read more »
Asian stock markets fall as troubled Credit Suisse taken over amid global banking concernsAsian stock markets fell today after Swiss authorities arranged the takeover of troubled Credit Suisse amid fears of a global banking crisis
Read more »
UBS offers to buy Credit Suisse for up to $1bnSwiss authorities expected to change country’s law to bypass UBS shareholder vote via IrishTimesBiz
Read more »
ECB ready to help banks after €3bn rescue of Credit SuisseGovernments hope for calm when markets open after rival UBS agrees takeover of beleaguered lender
Read more »
UBS buys troubled Credit Suisse bank for over $2 billionThe event came after a day of talks at the finance ministry on the future of Credit Suisse and a rejected offer from UBS of $1 billion.
Read more »
Time runs out for Credit Suisse; Irish gin for Ukraine; and Applegreen in US courtBusiness Today: the best news, analysis and comment from The Irish Times business desk
Read more »