I would like to share with you some thoughts on crisis management – especially from a German point of view – and on crisis prevention – the latter, of course, in a more international context. 2  Crisis management  As you all know, it was the insolvency of Lehman Brothers that led to the dramatic intensification of the financial turmoil.
As an aside, there seems to be a broad consensus that allowing this bank to go bankrupt was a mistake in view of the ensuing heavy losses. Owing to a rapid rise in counterparty risks following the Lehman insolvency, wholesale funding markets almost completely dried up causing a number of financial institutions that relied heavily on wholesale funding to run into serious difficulties.