Financial institutions have paid more than $150bn in fines in the US relating to the credit crisis, passing a significant milestone a decade after it became clear American subprime woes had become a global problem.
Ten years ago this week, France’s BNP Paribas barred investors from accessing money in funds with subprime mortgage exposure, citing a “complete evaporation of liquidity”. The date — August 9, 2007 — is pegged by many as the moment the financial crisis began.
Financial institutions have largely recovered from the Great Recession that followed, but the crisis profoundly reshaped economies and markets, and the effects on politics and society are still being felt. Dealing with banks’ alleged misdeeds from the era also remains unfinished business.