USA (FDIC)’s experience revealed the need to restore discipline in the marketplace, allowing the failure of large financial entities if they become nonviable, necessity of cross-border cooperation for their orderly liquidation, strong capital base by banks and enforcing objective capital standards by supervisors.
The system had been hacked. The culprit in this case was Nevil Maskelyne, a magician. Allegedly, he had been hired by a British wired-telegraph company which was worried that Marconi’s invention might ruin its business. Technology has advanced a lot since 1903. And it has created a deeply interconnected world. The financial system is a case in point.