Five years on from the event that shook the world, Rebecca Jones asks commentators what lessons have been learnt.
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 encourages corporations and individuals to live within their means.
What has Lehmans’ collapse taught us?
The process of removing exceptional stimulus has begun, revealing the extent to which the recovery has been artificially, rather than fundamentally, driven.
Further proliferation of – and addiction to – quantitative easing risked its impact being increasingly viewed as fundamental.
Stimulus removal should herald a move towards more rational decisions being taken on asset values, write-offs and bankruptcies to foster a healthier market.
Signs of corporate renewal shouldn’t be seen as bad news but the building block for a more sustainable and growth driven future.
The transition from exaggerated gains underpinned by excessive stimulus to relatively slow economic growth and commensurate asset market returns may not be hoped for by all but, given the issues still to be addressed, investors should adjust their return expectations.
Failure to do so risks forgetting the lessons of the past five years and over-emphasising the return on capital at the expense of the return of capital.
Elizabeth Stephens, head of credit and political risk analysis, JLT Specialty
A key challenge arising from the collapse of Lehmans is reconciling the regulation of the financial sector with the maintenance of sufficient levels of liquidity to fund trade and investment.
Capital adequacy standards for banks are a key area to be targeted. Basel III, agreed upon in 2010, effectively triples the capital reserves for many banks to 7%.
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£92bn transferred since 2015
Achievements, charity work and other happy snippets
Since first announcement