And so, with the fall of Lehman, it was necessary to accept potentially sweeping contagion effects in the financial system. An important lesson learned from this experience is undoubtedly the fact that it is only possible to resolve an institution without triggering major financial market turmoil if the contagion effects are contained and the other financial market participants are sufficiently resilient.
3 / 13  BIS central bankers' speeches  But this was not the case at the time: following the Lehman bankruptcy, financial market participants sought refuge from risk and continued to invest only in the safest of assets, primarily the government bonds of certain countries.