Is this the next Lehman?

The Financial Times has drawn an intriguing, if disturbing parallel between the collapse of Bear Sterns and Lehman and the news that Franco-Belgian bank Dexia is again receiving state support.

While Bear Sterns’ and Lehman’s troubles revolved around toxic subprime property and structured credits, Dexia’s woes centre on toxic sovereign debt. Do Dexia’s troubles portend a collapse on the scale of the 2008 meltdown, and if so, which governments will be willing and able to bail out the financial system again?

The prospect of another severe financial shock, this time emanating from across the pond, only adds to worries stemming from the poor performance and nerve-wracking volatility plaguing the markets of late. Click here for an insight-packed compilation of articles on how to guide clients through the worst market volatility and turmoil.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.