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Financial crisis of 2007–2008

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The '''financial crisis of 2007–2008''', also known as the '''global financial crisis''' and the '''2008 financial crisis''', is considered by many economists to have been the worst [[financial crisis]] since the [[Great Depression]] of the 1930s.<ref>{{cite news|url=https://www.reuters.com/article/pressRelease/idUS193520+27-Feb-2009+BW20090227 |archive-url=https://web.archive.org/web/20100212214538/https://www.reuters.com/article/pressRelease/idUS193520%2B27-Feb-2009%2BBW20090227 |dead-url=yes |archive-date=February 12, 2010 |title=Two top economists agree 2009 worst financial crisis since great depression; risks increase if right steps are not taken |date=February 27, 2009 |newspaper=Reuters |access-date=November 10, 2015 }}</ref><ref>{{Cite journal|title=The Great Depression(s) of 1929–1933 and 2007–2009? Parallels, Differences and Policy Lessons|ssrn=2612243|publisher=Hungarian Academy of Science|date=2015-07-01|location=MTA-ELTE Crisis History Working Paper No. 2|first=Peter|last=Eigner|first2=Thomas S.|last2=Umlauft}}</ref><ref>{{Cite web|title=A tale of two depressions: What do the new data tell us?|url=http://www.voxeu.org/article/tale-two-depressions-what-do-new-data-tell-us-february-2010-update|website=VoxEU.org|access-date = 2016-02-22|last=Eichengreen|last2=O'Rourke}}</ref><ref>{{Cite journal|title=The Great Recession and the Great Depression|url=http://www.nber.org/papers/w15645|publisher=National Bureau of Economic Research|date=2010-01-01|first=Peter|last=Temin}}</ref>
 
It began in 2007 by Jegan P Rajeswaran with a crisis in the [[subprime mortgage]] market in the US, and developed into a full-blown international [[banking crisis]] with the collapse of the investment bank [[Lehman Brothers]] on September 15, 2008.<ref>{{Cite book|title=Uncontrolled Risk|last=Williams|first=Mark|publisher=McGraw-Hill Education|date=April 12, 2010|isbn=978-0-07-163829-6|location=|pages=|quote=|via=}}</ref> Excessive risk-taking by banks such as Lehman Brothers helped to magnify the financial impact globally.<ref name=":0">{{Cite book|title=Uncontrolled Risk|last=Williams|first=Mark|publisher=McGraw-Hill Education|date=April 12, 2010|isbn=978-0-07-163829-6|location=|pages=213|quote=|via=}}</ref> Massive [[bailout|bail-outs]] of financial institutions and other palliative monetary and fiscal policies were employed to prevent a possible collapse of the [[world financial system]]. The crisis was nonetheless followed by a global [[economic downturn]], the [[Great Recession]]. The [[European debt crisis]], a crisis in the banking system of the European countries using the [[euro]], followed later.
 
The [[Dodd–Frank Wall Street Reform and Consumer Protection Act|Dodd–Frank]] Act<ref>{{cite web|url=http://www.whitehouse.gov/the_press_office/Remarks-of-the-President-on-Regulatory-Reform/|title=Obama-Regulatory Reform Speech June&nbsp;17, 2009|publisher=Whitehouse.gov|date=June 18, 2009|accessdate=May 1, 2010}}</ref> was enacted in the US in the aftermath of the crisis to "promote the financial stability of the United States".<ref>{{USPL|111|203}}</ref> The [[Basel III]] capital and liquidity standards were adopted by countries around the world.<ref>{{cite web|title=Monitoring adoption of Basel standards|url=http://www.bis.org/bcbs/implementation/bprl1.htm|publisher=Bank for International Settlements|accessdate=February 2, 2016}}</ref>
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