What this crisis has witnessed is a massive break down of trust across the entire financial system – trust in banks and nonbanks, trust in central banks and other regulators, trust in credit rating agencies and investment advisers, trust in brokers, dealers and traders, and trust in the financial markets, if not in the market system itself.
Anatomy of financial instability It was the abrupt breakdown of trust following the collapse of Lehman Brothers in midSeptember 2008 that caused financial markets in advanced economies to go into seizure.