News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Interbank markets must heal the broken link in lending chain

Central counterparty-like guarantees may reassure foreign central banks

It is generally more important to isolate and treat the cause of an illness than to relieve the symptoms. But when a symptom itself becomes a transmission agent, then it too will require a cure.

In August 2007, symptoms indicating chronic problems in the financial system first became evident in the money markets. Small fissures there soon developed into discernible splits and eventually chasms.

WSJ Logo