Global Financial Crisis: The 2008 Global Financial Crisis got everyone attention and since then all eyes have been fixed on the banking industry every move, according to Business Week. It faced investigations in the US and Europe, with total fines for a variety of misbehaviour estimated to be as high as $300 billion by Morgan Stanley. Should Middle East banks be scared If there were some in the US and European banking industry who thought they could virtually destroy the global economy overnight without consequences, they were wrong. But more long-lasting will be the hefty set of new rules governing how banks must operate, known as Basel III. Regulators from the major nations regularly meet in the medieval Swiss town of Basel, but the issuance of new rules to govern the operation of lenders is rare. But the sub-prime mortgage crisis in the US, the contagion it spread across the global banking system and the resulting market carnage exposed their inadequacy. The first Basel rules were devised in 1988, while a second lot, Basel II, were published in 2004 and implemented gradually in the years after.
(news.financializer.com). As
reported in the news.
Tagged under Global Financial Crisis, global economy topics.