BIS Review 15/2002  3  Conclusion Six months after September 11, much has been planned and achieved, but we still have much to do. We must sustain the current drive to minimize or eliminate the vulnerabilities I have discussed. We must view September 11 as a wake-up call to improve the resilience of financial markets and institutions.
This was, in almost all aspects, extremely successful. The “run” was contained, and Mexico experienced a “V-shaped” recovery. But it did highlight the moral hazard that goes with bail-outs – it left the impression that lenders would be protected when things went wrong (see Dooley (1997)). The contrast to this is bailing-in the private sector – enforcing a stand-fast and “hair-cut”.