The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

The blame game: Who's responsible for the credit crunch, liquidity crisis, sub-prime debacle or complete and utter financial carnage?

The ousting of various chief executives of financial institutions around the world is natural, given the size of the value destruction they have overseen. But as the sorry saga – known variously as the credit crunch, liquidity crisis, sub-prime debacle or complete and utter financial carnage – plays out, many are starting to play the blame game.

After all, it takes more than a few banking big wigs to bring the global economy to its knees. Perhaps we are all guilty of suspending reality. Anyway, here, in no particular order, is the weeklyFiX’s attempt to make sure that those who deserve it, get their fair mention:

  1. The Septics (aka US bankers) – For thinking that they were clever and understood financial markets. Creating sub-prime mortgages was bad enough, but repackaging them and selling them to stupid people all over the world makes them 100% guilty.

  2. European banks – For believing that a new asset had been created and rushing in to capture some yield.

  3. Rating agencies – For persistently getting it so wrong.

  4. Hedge funds – Apparently aggressive financial predators who nearly tipped the world’s financial markets into the abyss.

  5. TCI – For forcing the break up of ABN Amro, claiming it was worth more than its €50 billion market capitalisation. How wrong it was. As a result, one European bank disappeared and two others have been nationalised.

  6. Fred ‘the Shred’ Goodwin – For thinking TCI was right and then paying too much for some not very good bits of ABN Amro.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree