Wednesday, January 07, 2015

Bank of England believed Irish as bad as Lehmans in causing global financial crisis

Minutes of Bank of England Committee of Non-Executive Directors meeting, 15 October 2008, page 325 --

It was also noted that whilst international coordination proved to be the route to a solution [to the banking crisis], the lack of it also proved to be as much a trigger for the crisis as the failure of Lehman Brothers. Actions announced first by the Irish government and then the German government were both unclear and uncoordinated, and led effectively to a 'beggar thy neighbour' policy which froze the international banking system. 
The Irish policy being discussed is the notorious 2008 blanket bank liability guarantee.