Financial Times/Gillian Tett/4-8-2023
“The first lesson is that when a bank implodes, this is almost always a symptom — not a cause — of something askew in the wider financial world, affecting other institutions. Financiers rarely want to admit this.”
USAGOLD note: As a reporter and columnist at the Financial Times, Gillian Tett has had a ringside seat, as FT puts it, for “a quarter century of financial crashes.” In this detailed analysis, she walks us through “five key lessons to ponder” she learned from covering those events. We reference the first above. We add that the same erosion of bond values that caused the collapse of SVB also brought down Credit Suisse a short time later and remains a cause for concern in the international banking system.