The timing and choice of topics for this exchange of ideas between a panel of leading thinkers
could not have been better, with the financial system only a heartbeat away from its breakdown,
tremendous state aids throwing all market-belief over-board, a dramatic shrinking of “assumed”
liquidity due to reduced lending activities between financial institutions and a huge swing of real
liquidity between different asset classes.
Discussions took place on September 12 and 13, 2008, just hours before the investment bank Lehman Brothers failed and was denied a government bailout, forcing it to file for bankruptcy. Although the general mood at this time was still rather positive, all participants shared their rather pessimistic view on the burgeoning financial crisis.
Is this just a financial crisis? Will it impact the “bricks-and-mortar” industries as well? And if so,
what is the next round in this vicious circle? Can and should the governance issue be solved by
the players within the financial industry or do we need politicians to change the market mechanics?
How do we avoid future “too-big-to-fails”?
One could argue that market mechanics have no embedded memory and tend to make the same
mistakes over and over again unless the underlying incentive structures and governance procedures change.
Please find more detailed information on the panels in our review (PDF below).
