The market valuation of the NASDAQ fell by around $ trillion between March 2000 and October 2002, roughly 20 times the current total value of VCs outstanding. How holders of VCs consume out of their perceived wealth and how much is built on leverage are crucial to determining the impact of a crash. Until recently, VCs have lacked perceptible connections to the financial system.
However, we will also ensure that officers of banks and debtors who contribute to bank failures are brought to book to the full extent of the law and that all proceeds of infraction are confiscated where legally feasible. Thank you. 4  BIS Review 111/2009