PA Portfolio: What the Lehmans' collapse taught us

Robert Talbut, chief investment officer, Royal London Asset Management The events of 2008 have resulted in banks being subjected to significant regulatory oversight and intervention. Bank investors can suffer significant losses, now borne by creditors, and many see the situation in Cyprus as the model for bank resolution. Immediately post-crisis there was greater willingness to accept lower returns but time dims the memory. Greenspan eased monetary policy to maintain high consumption levels and cynics now struggle to understand how central banks' current stance of printing new money...