Though, it has been analyzed threadbare in different fora, it would not be out of place to start with a bird’s eye view of the global financial crisis to put the recent developments in proper perspective. The global financial crisis, though brewing for a while, started to show its severe effects from the latter part of 2007 and into 2008.
Under its impact, world stock markets fell, large financial institutions collapsed or were bought out and Governments in most developed countries had to use public funds to formulate rescue packages to bail out their financial systems. There has been a broad consensus that regulatory failures are among the causes underlying the recent global financial crises.