The 38th St. Gallen Symposium
University of St. Gallen
Switzerland
15–17 May 2008

The Crisis on the Financial Markets: Problems Identified? Lessons Learned?

Thursday, 15 May 2008, 18:15–19:45

After months of turmoil in the financial markets and a yet uninterrupted series of alarm signals, there has been increased questioning about where this crisis is going to go and whether the bottom has already been hit. Within this state of uncertainty, it becomes increasingly difficult not only to assess the extent of the crunch and its causes but also to conceive its further implications. Over past years, the financial industry’s activities in risk structuring and risk diversification throughout the world were taking place in the context of a growing risk appetite, high liquidity and wrongly set incentives. Most importantly, the overall assumption was that securitisation and worldwide risk transfer was the way to achieve a stabilising effect on the financial and economic system as a whole. However, in truth, the diversification of risks remained largely an illusion. Furthermore, because the financial markets have become the backbone of global economic development, repercussions on the global real economy with its extensive flow of goods, services and people will have a yet unknown effect on corporate strategies and global consumer attitudes and lifestyles. In this sense, the session is going to address the root causes of the crisis, its significance for the future shaping of financial institutions and regulatory bodies as well as the implications on financial markets and the real economy. Moreover, the question has to be asked emphatically whether any lessons can already be drawn from the crisis.

The 39th St. Gallen Symposium will take place from 7–9 May 2009 at the University of St. Gallen. Further information will be published at the beginning of October 2008.

Background

Further Information