By Dr. Michael Lim Mah-Hui
Philippine Daily Inquirer
First Posted 03:32am (Mla time) 09/28/2008

FIFTEEN MONTHS HAVE PASSED SINCE THE financial crisis exploded in the United States with the implosion of two hedge funds managed by Bear Stearns.

Since then Bear Stearns has been acquired by JP Morgan Chase. Two other veritable investment banks—Lehman Brothers declared bankruptcy and Merrill Lynch was bought by Bank of America—have also disappeared, leaving only Morgan Stanley and Goldman Sachs. Both have given up their status as stand-alone investment banks to become bank-holding companies in order to access funding from the Federal Reserve Bank (“the Fed”).

This is indeed a fall for masters of the universe, Wall Street bankers who once commanded the heights of the financial industry and thought they were invincible.

What went wrong and why has the turmoil continued unabated, lunging from one crisis to another?

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