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Ten years on, why the country is unlikely to revisit the Lehman crisis

A stringent retail lending mechanism, a scathed but smarter MF sector and insolvency laws that could foster a healthier India Inc may see the country steer clear of a 2008-like economic mess

Harsh Roongta 

On September 15, 2008, fear ruled the street. The collapse of Lehman Brothers had left the financial system tottering. In the 25 years I have spent in the banking industry, I had never seen any other international event having such a huge impact on India. Talks of job losses were rife, and many jobs were actually lost.

The Reserve Bank of India rushed in to calm the markets. Easy liquidity became the order of the day to ensure availability of adequate funds to the system. And that was just the beginning. No one will forget the panic redemptions in liquid funds and fixed maturity ...

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First Published: Fri, September 14 2018. 07:37 IST