The price of trust: tackling the risks of ring-fencing

Learning the wrong lesson from Lehman? Ring-fencing hikes risk of bank failure, says Credit Suisse’s Wilson Ervin – he proposes an alternative

razor wire barbed fence risk - Getty - web.jpg

Trust was another casualty of the financial crisis. The crash-landing failures of Fortis and Lehman Brothers imposed surprise losses on many, including host countries of the firms’ entities around the world. This shattered the implicit assumption that large banks would be handled smoothly by their home regulators – a belief that had held up reasonably well for decades. Banks were now said to be “international in life, but national in death”.

In response, many jurisdictions adopted stringent

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

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

Digging deeper into deep hedging

Dynamic techniques and gen-AI simulated data can push the limits of deep hedging even further, as derivatives guru John Hull and colleagues explain

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