Rescue remedy

Governments and central banks have finally acted to attempt to stem the crisis that engulfed the world's financial markets. But is their response too little too late? Laurence Neville finds out

After navel gazing for much of the financial crisis, European governments got their act together in October with a series of measures to shore up banks' tier 1 capital and provide guarantees for funding and deposits. Indeed, the UK government's model of direct capital injections in banks where necessary was so warmly received that it was rapidly emulated in the US and elsewhere in the world.

The reaction in credit markets was euphoric: the iTraxx financials index tightened by more than 50bp to 96

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here