Reimagining financial reforms in India, 10 years after Great Recession
Ten years after the 2008 financial crisis, more, not less, financial sector reform is urgently needed in India
Until Lehman Brothers filed for bankruptcy on 15 September 2008, home loans going bad in some pockets of the US seemed like a small problem for the world. It was a local issue unlikely to cause a problem even for the US economy. If a bank gave a loan to a household who could not pay it back, it was going to be a problem for the individual household, not even particularly for the bank. It was assumed that the bank would be able to absorb small losses.