Important international banking institutions have become so involved in the problem of excessive leverage and speculative investments in the global financial markets that they now also have to implement major and painful internal restructuring programmes. A few examples of such forced financial reform programmes already surfaced in recent weeks and more will most probably follow.
Maybe we are now much closer to finding a solution for the international financial crisis of the past year, which can surely no longer be blamed only on macroeconomic mismanagement in the smaller economies of the world. LTCM exposed one of the major sources of global financial instability. 4.