IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-25113-7_8.html
   My bibliography  Save this book chapter

Different Lessons from Lehman Brothers and Fortis

In: Asia and the Subprime Crisis

Author

Listed:
  • Chi Lo

    (Economic Strategist)

Abstract

Over two decades of financial deregulation and rising competition have prompted financial institutions in the developed world, such as Lehman Brothers in the US and Fortis in Belgium, to develop structured products that are opaque and lack proper risk and regulatory controls. This sowed the seed for a financial disaster. Unlike AIG, the failures of Lehman Brothers and Fortis were more macro-driven, with the bursting of the US housing bubble putting the final nail in their coffins. The developed world banking sector will go through a period of re-regulation. Conventional banking practices will return, while complex financial engineering will be reduced sharply in the coming years of debt liquidation process. The pricing power of the universal banks will grow, due to their dominance in the financial community. This bodes well for the Chinese banking/financial conglomerate model when it comes to overseas expansion.

Suggested Citation

  • Chi Lo, 2009. "Different Lessons from Lehman Brothers and Fortis," Palgrave Macmillan Books, in: Asia and the Subprime Crisis, chapter 7, pages 70-78, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-25113-7_8
    DOI: 10.1057/9780230251137_8
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-25113-7_8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.