Bank Insolvency and Resolution in European Countries: A Case Study of Lehman Brothers

The 2008 financial crisis served as a cautionary tale that talks about concerns of safety and stability in the finance industry. Financial markets institutions are vulnerable to periodic issues significant illiquidity insolvency, addition fraud other malpractices that, if uncontrolled, can lead crisis, system wide. risk instability exists both at individual well aggregate levels markets, its realization result substantial social economic costs. Amidst over three decades struggle smoothen international regulatory prudential policies, Basel Committee on Banking Supervision did not address resolution large, complex bank. 2008-2009 conclusion multiple large had become too fail propelled towards forefront global agenda.