Banking, the vicechairman of blackrock, the worlds biggest money manager, which handles more than 5 trillion in assets. After the financial crisis, what have we learned . Philipp we learned that we had too much leverage in the system without any doubt. When you have too much leverage, bad things happen. Not only do they happen, but when they happen, things tend to be amplified. So that is the key take away from it all. We have also learned that this notion of letting the market be totally free, that governments really should get out of the way, that wasnt a good idea. I think what stands out is banks needed much more capital than they had at the time. We had capital levels that were excessively low. I mean in some cases, these banks were leveraged nearly 100 times. And that, to me, has always been the key takeaway. In some ways, i wish we had focused more on the capital issue, and less on all of the other things that have made it into the Regulatory Reform realm. Francine but is there
Recognized names in swiss banking, the vicechairman of blackrock, the worlds biggest money manager, which handles more than 5 trillion in assets. After the financial crisis, what have we learned . Philipp we learned that we had too much leverage in the system without any doubt. When you have leverage, bad things happen. Not only do they happen, but when they happen, things tend to be amplified. I think that is the key take way from it all. We have also learned that this notion of letting the market be totally free, that governments really should get out of the way, that wasnt a good dea. I think what stands out is banks needed much more capital than they had at the time. We had capital levels that were excessively low. I mean in some cases, these banks were leveraged nearly 100 times. And that, to me, has always been the key takeaway. In fact, in some case, in some ways, i wish we have focused more on the capital issue and less on all of the other things that have made it into the Regu
We meet one of the most recognized names in swiss banking, the vicechairman of blackrock, the worlds biggest money manager, which handles more than 5 trillion in assets. After the financial crisis, what have we learned . Philipp we learned that we had too much leverage in the system without any doubt. When you have too much leverage, bad things happen. Not only do they happen, but when they happen, things tend to be amplified. So that is the key take away from it all. We have also learned that this notion of letting the market be totally free, that governments really should get out of the way, that wasnt a good idea. I think what stands out is banks needed much more capital than they had at the time. We had capital levels that were excessively low. I mean in some cases, these banks were leveraged nearly 100 times. And that, to me, has always been the key takeaway. In some ways, i wish we had focused more on the capital issue, and less on all of the other things that have made it into t
Crunch struck, responding by pumping billions of pounds into the economy. Joining me on leaders with lacqua, former bank of england governor, economist and author mervyn king. Lord king, thank you so much for speaking to bloomberg tv. It is always a great pleasure. What lessons have we learned from the financial crisis . Lord king i hope we learned the lesson that this was a lot bigger than just a financial crisis. It represented a serious problem in the world economy. Not sure that everyone sees it that way, but i think that is the most important lesson. I think secondly we learned we need to worry not just about the amount of Equity Capital banks issue, we need to limit the leverage, but we also need to tackle the problem that banks are inherently unstable. And if people lose confidence in them, they take their money out, or they do not roll over their lending, and we need a mechanism for dealing with that. Francine did we see early signs of it, or were we late to the game . Lord kin
Recognized names in swiss banking. He is now vicechairman of blackrock, the worlds biggest money manager, which handles more than 5 trillion in assets. After 10 years from the financial crisis, what have we learned . Philipp we had too much leverage in the system without any doubt. And that when you have leverage, bad things happen. Not only do they happen, but when they happen, the effects tend to be amplified. I think that is the key takeaway roommate all. We have also learned that this notion of kind of letting the market be totally free, that governments really should get out of the way, that wasnt a very good idea. What stands out is banks needed much, much more capital than they had at the time. We had capital levels that were excessively low. I mean in some cases, these , banks were leveraged nearly 100 times. And that, to me, has always been the key takeaway. In some some case ways i wish we had focused more on the capital issue and less on all of the many other things that hav