A financial tempest occurs, bringing down an industry giant and several other firms behind it. A large and complex web of counterparty relationships causes losses across the market and precipitates an existential crisis. Regulators pounce on the industry’s failings, insisting it must do better. Then, the market gradually begins to rebuild itself, turning towards central clearing and making improvements in other areas.
This is not the tale of Lehman Brothers and the financial crash of 2008.