Explained: What happened during the 2008 Lehman crisis
Thanks to easy money sloshing about globally, the financial and trading system will keep throwing up other asset bubbles
Mumbai: On 11 April 2008, Henry Paulson, the then US secretary of the treasury met Richard Fuld, the chief executive officer of Lehman Brothers at a dinner. “I am worried about a lot of things," Paulson told Fuld. Andrew Ross Sorkin recounts this conversation in his book Too Big To Fail. Paulson also told Fuld that he was “anxious about the staggering amount of leverage—the amount of debt to equity—that investment banks were still using to juice their returns".