Insurance: Just Part of the Financial Sector? [5]

Go to: Summary | Previous | Next   
Bullet points include: See e.g. Kemp (2009) or Bank of England (2008). Up to July 2007: extended credit boom, ‘search for yield’. Rising defaults on US sub-prime mortgages, Bear Stearns, losses spill over into other global financial markets including CP market (and CDOs and SIVs). Critical phase, late Summer and Autumn 2008. Problems at Fannie Mae, Freddie Mac. Collapse of Lehman Brothers, support package for AIG (Sept 2008). Breakdown of interbank funding markets. Broader institutional distress, governments recapitalise banks, guarantee bank debt and introduce/increase size of liquidity schemes (Oct 2008)

Contents | Prev | Next | Library

Desktop view | Switch to Mobile