The persons involved are acknowledged experts on monetary and banking issues, and for the most part have many years of experience in the field of monetary policy. And the reactions by the markets were clearly positive. Some analysts are even talking of a “dream-team”. But, of course, even the most promising dream-team has to make the big points in reality.
In particular, it has exposed the fragilities of those models based, on the one hand, on “originate-to-distribute” activities and securitisation techniques, and, on the other hand, on excessive dependence on wholesale and capital markets for funding.