![]() And with Credit Suisse, with hindsight one can see that there were many reasons for investors and bondholders to be much more worried than they actually were.’ ‘SVB went under for very specific reasons that don’t apply to many other banks. ‘There’s a heightened sense of nervousness, but the preconditions for the beginning of a big financial crisis are not there’, she says. DeAnne Julius is a senior adviser to the international affairs think-tank Chatham House and a distinguished fellow in its Global Economy and Finance programme. While the banking sector is clearly in trouble, another global financial crisis is not on the way. However, few believe that history is about to repeat itself. Lenders ended up with paper losses, leaving investors unimpressed. These lost a good deal of value as interest rates were increased. Jamie Dimon, Chief Executive of JPMorgan Chase, complained that the rules in the US had incentivised banks to build up large portfolios of US Treasury bonds. ![]() Many pointed the finger of blame at banking regulators then, and some are doing so again now. ![]() All of this revived uncomfortable memories of the global financial crisis of 2008.
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