Two Years Ago: The Fall of Lehman Brothers

Two years ago, the bankruptcy of Lehman Brothers caused the collapse of the markets and the global financial crisis — a first since 1929. A few days before its fall, as Patrick Jolivet reminded us, rating agencies had rated Lehman Brothers as an “A.” To Jacques Cossart, Jean-Marie Harribey and Dominique Plihon, the traditional regulations did not withstand the financial crisis.

We need to tackle the problem at its root. That is to say, we need an accountable and efficient regulation of the global economy, according to Laurent Fabius. Not really, Charles Wyplosz replied to him. In order to curb the financial crisis, it is banks’ profits that must be controlled, not bonuses. Liberalism is a cure to the crisis, Nicolas Baverez retorted.

On the contrary, the “appalled economists” claimed that the dominant thinking patterns that have been directing economic policies for 30 years have to change. Besides, it is sick, Pierre-Henry Leroy said, that governments rescue speculators with taxpayers’ money.