10 years ago, the worst financial and economic crisis of the post-war period erupted, fuelled by the Lehman Brothers collapse. The excesses in US real estate markets, which had become increasingly apparent during the preceding months, triggered the collapse of the US mortgage market and culminated in the international financial crisis. In the intervening years many other markets went toxic: there was the Irish real estate and banking crisis, the Spanish real estate and banking crisis, the turbulence in the European financial system, the crises in corporate lending by Greek and Italian banks, the sovereign debt crises in Southern Europe, the crisis in the shipping sector and among the banks specialising in ship finance.

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The Lehman crisis was a wakeup call

“2008 was a turning point: people started to doubt globalisation and the prospect of degloblalisation became thinkable,” Prof. Harold James says. In this video, the economic historian looks at the long-term impact of the financial crisis.

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Economy Views: Global risk – global rules

“Our job is to take and manage risk,” says Sylvie Matherat, Deutsche Bank’s Chief Regulatory Officer. Are banks really safer today than they were 10 years ago? What kind of regulation is needed in times of geopolitical uncertainties and growing nationalism?

More about the Lehman crisis

10 years after Lehman: How technology has shaped banking since 2008
Just a few months before Lehman collapsed, a technology concept was launched that would have profound consequences. Apple’s App Store brought the concept of digital distribution platforms directly to users, via the newly launched iPhone 3G. A decade later, the idea of a platform business is being held up as the future of banking. more

10 years after Lehman: a more stable financial system, says DWS’ Klaus Kaldemorgen
In an interview with Germany’s FONDS professionell, DWS fund manager Klaus Kaldemorgen recalls the weekend 10 years ago when Lehman Brothers collapsed. Kaldemorgen believes that the more stringent equity capital requirements that have since been introduced have contributed to a more stable financial system. more

10 years after Lehman: the way we talk to talent has changed completely
Faye Woodhead from Deutsche Bank’s HR team talks about new ways of graduate recruiting. more

10 years after Lehman: predicting the timing or the scale of a crisis is near on impossible
Jim Reid from Deutsche Bank Research about what was singular about the crisis, the learning curve of economics and his overriding image of 2008. more

10 years after Lehman: we’ve done a lot to strengthen the financial system, says Sylvie Matherat
In an interview with German press agency dpa, the Chief Regulatory Officer says the financial world is considerably more stable today. more

10 years after Lehman: Banks have cleaned up their act considerably
Jan Schildbach, Deutsche Bank Research, on the differing development of European and US banks since 2008. more

Interview with Stuart Lewis: A safe bank
In the last 10 years, Deutsche Bank has been cutting its balance sheet, helped by stricter banking prudential regulation and supervision. At the same time the bank has significantly reduced the risks in its balance sheet, especially those risks that led to the collapse of a number of large banks during the Financial Crisis a decade ago. “I can definitely say that Deutsche Bank is a safe bank,” says Stuart Lewis, Chief Risk Officer and Member of the Management Board, in an exclusive interview with Italian newspaper Il Sole 24Ore. Read the complete interview here.

McKinsey study: A decade after the global financial crisis: What has (and hasn’t) changed?
In a recent Briefing Note, McKinsey Global Institute writes that the world economy has returned to robust growth, but some familiar risks are creeping back, and new ones have emerged. more

A chronology of key events and measures since 2008

What began in 2007 as a regional earthquake in the US mortage market– triggered shocks in the following months and years that severely damaged real estate financiers, banks, insurers and funds After the collapse of the US investment bank Lehman Brothers, founded in Alabama in 1850 by German emigrants, the global financial crisis took its course.

September 15, 2008

Lehman Brothers files for bankruptcy, leading to stock exchange and market turmoil worldwide

September 17, 2008

US government provides USD 85 billion emergency loan to the world’s largest insurer, AIG

September 18, 2008

US Federal Reserve Chairman Ben Bernanke asks Congress to approve a USD 700 billion bailout to buy up-mortgage-backed securities that were in danger of defaulting

September 22, 2008

Goldman Sachs and Morgan Stanley plan to convert into regular commercial banks and seek US Federal Reserve protection

September 25, 2008

JP Morgan Chase acquires failed US savings bank Washington Mutual

September 29, 2008

The stock market crashes when the US House of Representatives rejects the bailout bill

September 29, 2008

To restore financial stability, the Federal Reserve doubles its currency swaps with foreign central banks in Europe and Japan to USD 620 billion. The governments of the world are forced to provide all liquidity for frozen credit markets

September 30, 2008

Ireland’s six largest banks are close to failing. Ireland’s government guarantees EUR 400 billion of liabilities for all deposits. Debt ratio in Ireland and in many other eurozone countries rises

October 3, 2008

US Congress passes USD 700 billion bailout bill and implements the “Troubled Asset Relief Program” (TARP)

October 5, 2008

German Chancellor Angela Merkel and Finance Minister Peer Steinbrück assure the public on television that their deposits at local banks are safe

October 6, 2008

Germany’s DAX stock index drops by more than 7 percent; Dow Jones Index falls by as much as 800 Points

October 7, 2008

The US Federal Reserve agrees to directly issue short-term loans for businesses that cannot get them elsewhere

October 7, 2008

EU Finance Ministers agree to support “systemically relevant financial institutions” and to provide guarantees for bank deposits of a minimum of EUR 50,000 across the region

October 8, 2008

Six major central banks all announce simultaneous cuts in interest rates. Markets only calm down momentarily

October 12, 2008

Eurozone leaders agree on joint recapitalisation plans for Europe‘s financial sector in order to prevent bank failures

October 13, 2008

Germany announces rescue package worth EUR 480 billion to stabilise the financial markets. France, the Netherlands, Austria and Spain also agree on rescue packages worth billions of euros

October 15, 2008

The US announces the biggest trade deficit in its history

October 16, 2008

UBS receives CHF 6 billion capital injection from the Swiss government. USD 60 billion of toxic assets are moved into a special purpose vehicle owned by the Swiss National Bank

October 17, 2008

German parliament passes financial markets stabilisation bill, the fastest bill ever to be passed in Germany. It makes a key contribution to the stabilisation of the German financial market

October 24, 2008

13 Asian countries commit to a joint USD 80 billion emergency fund for the financial sector

November 12, 2008

The US Treasury partners with the Federal Reserve to use part of the USD 700 billion bailout to address a freeze in the consumer credit market. The USD 1 trillion secondary market for credit card, auto, and student loans had recently come to a standstill

November 14-15, 2008

The G20 Group establishes itself as the central coordination forum for global economic and financial policy. In Washington D.C., the heads of state and government agree on a comprehensive package of measures aimed at preventing the global economy from collapse and stabilising the international financial system

November 25, 2008

The US Treasury provides USD 20 billion cash injection to Citigroup

November 26, 2008

The Fed announces its plans to spend USD 800 billion to purchase mortgage-backed securities from Fannie Mae and Freddie Mac, as well as consumer loans

December 19, 2008

The US Treasury injects USD 105 billion in TARP funds into eight banks in return for preferred stock

January 8, 2009

Germany takes a stake of 25 per cent plus one share in Commerzbank as the bank is bailed out

January 12, 2009

US banks report they have lost more than USD 1 trillion since the beginning of the subprime mortgage crisis in 2007

February 13, 2009

US President Barack Obama initiates a USD 797 billion stimulus package to boost economic growth by granting tax cuts, unemployment benefits and supporting "shovel-ready" public works

February 18, 2009

US President Obama announces a USD 75 billion plan to help stop foreclosures. The Homeowner Stability Initiative is designed to help the 7 million to 9 million homeowners avoid foreclosure by restructuring or refinancing their mortgage before they get behind in their payments

March 2009

The Dow Jones drops to 6,594.44 points – a total loss of 53.4 per cent since its peak of 14,164.43 points on October 9, 2007 – and the lowest level since the Great Depression in 1929

April 2, 2009

At the World Financial Summit in London, the G20 countries adopt stricter controls and rules for international financial markets and allocate USD 1.1 trillion to aid poorer countries

August 2009

German law to strengthen financial market and insurance supervision comes into effect

October 2009

The unemployment rate in the US rises to 10 per cent, its highest level since the 1982 recession

May 10, 2010

Pressure mounts on the eurozone as refinancing costs rise as a result of the debt crisis in Greece and other euro countries. In order to stabilise the situation, the ECB acquires the government bonds of individual countries for the first time

July 7, 2010

The European Parliament agrees on stricter rules for variable compensation in the financial industry

July 21, 2010

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) is signed into federal law, leading to significant changes in financial market regulation in the US

July 2010

Germany passes bill to prevent fraudulent securities and derivatives trades

July 23, 2010

Seven of the 91 banks that participated do not pass the European stress test

January 2011

European supervisory authorities EBA, ESMA and EIOPA begin operations

August 8, 2011

The ECB increases its purchases of Italian and Spanish government bonds

June 2012

Spain and Cyprus apply for aid from the euro rescue package

July 26, 2012

ECB President Mario Draghi calms markets as he vows that “the ECB is ready to do whatever it takes to preserve the euro”

August 2012

The European Market Infrastructure Regulation (EMIR) to limit systemic risk in the European over-the-counter derivatives market comes into force

January 1, 2013

Basel III comes into force. The reform aims to increase the resilience of the banking sector in stress situations with stricter capital and liquidity rules, thus reducing the risk of financial sector problems affecting the real economy

January 1, 2013

German law to strengthen German financial supervision comes into effect

May 2013

New German law aims to prevent risks and misuse of high-frequency trading

July 2013

The Capital Requirements Directive IV (CRD IV) enters into force. It aims to ensure that financial institutions are better capitalised, both quantitatively and qualitatively, and imposes harmonised EU-wide liquidity requirements

June 5, 2014

ECB imposes negative interest rate for bank that deposit funds at the ECB instead of granting loans

November 4, 2014

ECB assumes responsibility for euro area banking supervision as the Single Supervisory Mechanism (SSM) is implemented

December 18, 2014

EU summit approves European Commission President Juncker's growth package

January 1, 2015

A few weeks after the implementation of the SSM, the second pillar of the European banking union – the Single Resolution Mechanism (SRM) – comes into force

January 22, 2015

The ECB decides to spend 60 billion euros per month buying up government bonds and other securities of the euro countries until the end of 2017 in order to indirectly stimulate the weak economy in the eurozone

July 20, 2015

Banks in Greece re-open after having been closed for three weeks

January 2016

Total Loss-Absorbing Capacity (TLAC) standard for 30 global systemically relevant banks is introduced

March 10, 2016

ECB lowers the interest rate to 0.0 per cent and increases the negative interest rate for deposits to (0.4) per Cent

July 29, 2016

In the stress test of the European Banking Supervision EBA, the majority of 51 financial institutions reviewed prove to be crisis-proof

June 6, 2017

Spanish bank Santander buys Banco Popular for the symbolic price of one euro. In parallel, the two Italian banks Veneto Banca and Banca Popolare di Vicenza must close

June 29, 2017

The largest US banks all pass a stress test by the US Federal Reserve for the first time since the crisis. This is seen as a signal that the financial crisis is over in the US

January 1, 2018

MiFID II and PSD 2 come into effect. Both directives are aimed at increasing transparency for customers

January 1, 2018

The Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation comes into force. It covers products such as investment funds, life insurance products with an investment element and certificates

July 9, 2018

The 5th EU Anti-Money Laundering Directive enters force. Member States will have until January 10, 2020 to amend their national laws to conform with the new Directive

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