Financial crisis: Downturn shows we were too slow to fix world's debt addiction - Telegraph

"He may yet have to. Banks have been faced with three problems throughout the crisis, and while one has been solved, the other two are still just as pressing.

The first is that financial institutions have been severely undercapitalised. As investors pulled cash out of the banks, their capital ratios dropped to dangerous levels, leaving many of them not just beyond the acceptable limits laid down by Basel but close to outright insolvency."

The financial institutions were playing on other people's money.

Financial crisis: Downturn shows we were too slow to fix world's debt addiction - Telegraph

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