We thought the banking sector was forever changed by the Global Financial Crisis (GFC): e.g., lower leverage, better risk management, greater transparency, etc.
Yet, the Greensill Capital bankruptcy, and the multibillions in losses plus dividend cuts, capital increases, and senior management layoffs at Credit Suisse – following the Archegos debacle and the Wirecard accounting fraud – bring back a bitter taste of past troubles. It would be unfair though not to recognise that the financial system and banks in particular managed their way through the Covid-19 crisis, the largest economic shock in modern history, thanks to the efforts made over the past decade to improve their robustness.
You can now read the full whitepaper at the link below
