Too Big to Fail? Not in the Blockchain World

Too Big to Fail? Not in the Blockchain World

Systemic risk in the financial world has increased in recent years due to the interconnected nature of global financial markets. Could the blockchain make a difference in reducing risk associated with failure of global players? Lehman Brothers and Systemic Risk. The collapse of Lehman Brothers in 2008 shook global financial markets. It reduced investor confidence in banks and contributed to recessions across the world. Interbank lending froze as banks did not have the confidence to place even overnight deposits in their fellow banks. When the fortunes of firms can change in a matter of....


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