Above all in the USA, this “originate-to-distribute” model was partly responsible for too many excessively risky loans being granted. Only now is it gradually becoming clear in what portfolios these risks ultimately end up. These structural developments took place in a setting of abundant monetary liquidity and increasing financial globalisation.
II  Ongoing uncertainty  We have given a detailed account of the tense situation in the financial markets in our Stability Review. Today’s press conference gives me the opportunity to look at the situation somewhat more from the current juncture. In doing so, I would like to highlight the following three points.