Mmastodon WorldEU Politics first seen 10 h ago, last 10 h ago, peak #5

European banks' role in the 2008 financial crisis revisited

Original: 1/3) Remember when European banks helped turn bad US subprime mortgages into a global catastrophe by underwriting, packa

European banks are being criticised for their role in the 2008 financial crisis, when they underwrote, packaged and resold securities built on US subprime mortgages while taking on heavy leverage, then required public rescue when the losses hit. Commenters are drawing parallels between that episode and current financial risk-taking, arguing the 'too big to fail' problem was never resolved.

Why now: Concerns about bank leverage and repeated bailouts are prompting comparisons with the run-up to the 2008 crisis.

European banks2008 financial crisisUS subprime mortgage market

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Rank over time, top of the chart is #1. 2 snapshots from 10 h ago to 10 h ago.

Evidence

• 1/3) Remember when European banks helped turn bad US subprime mortgages into a global catastrophe by underwriting, packaging, buying, and reselling mountains of supposedly safe debt while loading themselves with leverage - then, when it blew up, declared themselves “too big to… · vurk · 2

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