With the sharp decline in sovereign bond prices – often associated with a rating downgrade of the respective sovereign issuer – government bonds were made subject to significant haircuts and their refinancing power declined. This has eroded the volume of collateral available in the form of government bonds and stressed the re-financing possibilities of banks.
* * * Ladies and gentlemen,  Introduction I am honoured to be here today and have the opportunity to share my thoughts on the lessons from the international financial crisis.