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A crisis too complex for easy fixes


Source : http://www.iht.com

PARIS: Just over 100 years ago, J.P. Morgan gathered his fellow financiers at his Manhattan mansion amid growing financial panic and declared, "This is where the trouble stops."

Last weekend, a similar conclave gathered farther downtown at the Federal Reserve Bank of New York, with the Fed's chairman and the U.S. Treasury secretary giving the bosses of Wall Street giants like Citigroup, Goldman Sachs and, yes, J.P. Morgan, a similar ultimatum.

Unlike the successful dénouement to the Panic of 1907, however, the trouble did not stop. Indeed, the crisis of 2008 worsened, with one financial firm filing for bankruptcy protection, another ending up in a shotgun wedding with a major bank and a third essentially getting nationalized by Washington.

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