The financial crisis of 2008 and the Swiss "miracle"

The collapse of Lehman Brothers ten years ago triggered one of the biggest financial and economic crisis in a century. Switzerland did not escape unscathed but fared better than other countries, without amassing huge debt. On September 15, 2008, the fourth largest US investment bank filed for bankrupcy over the crisis in the subprime mortgage market. The government refused to bail out the insolvent institution, creating a collapse in confidence that froze credit markets and decimated the banking sector. From the United States, the financial crisis spread to other countries, soon turning into a global economic crisis that raised the spectre of another Great Depression. Switzerland was also affected but not as badly as initially feared.  Several reasons rendered Switzerland particularly vulnerable over the course of the crisis. Its top two banks, UBS and Credit Suisse, were among the most exposed foreign institutions in the subprime bubble. Switzerland was more dependent than ...

 
More Headlines

Follow worldbiztoday on Twitter

US Stocks