Admittedly, these are different works and I would not dare to put the Core Principles on par with the moon landing and the various countries’ space programs. Nevertheless, the Core Principles are a milestone in regaining financial stability after the current crisis. The question is: where do we stand?
Recent events The recent crisis that started in Summer 2007 reminded the wider public once again that banks are susceptible to problems of insolvency or illiquidity. Northern Rock was one of the first victims, following problems in the mortgage credit markets. Once its problems became publicly known, a classical bank run occurred with many customers queuing outside Northern Rock’s branches to withdraw their savings.