Ten years ago today, the global financial system started to crack with the decision by the French bank BNP Paribas to block withdrawals from hedge funds that invested in U.S. mortgage securities. That, as we now know, led to a widening crisis of confidence over what securities were really worth, which in turn called into question the basic solvency of many financial institutions. Unable to know who was safe—or what collateral was worth—the financial system went into gridlock, leading to the crisis we have been recovering from ever since.
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