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As I write, it is one year since the great global credit crunch began. On 6 August 2007, America’s second-largest mortgage lender American Home Mortgage Investment Corp filed for bankruptcy.  Three days later, France’s biggest bank, BNP-Paribas announced that it was freezing redemptions on three of its investment funds in sub-prime mortgages.  Immediately, the European Central Bank announced it was injecting E75bn into the financial system.  Only a few days later, the US Federal Reserve Bank announced a 50 base points cut in its funds rate and injected extra liquidity into the system.  The credit crunch had begun!

One year on, this earthquake in the global financial system has left banks, insurers, pension and municipal funds, hedge funds and private equity companies tottering and falling.  Collateral damage has been immense and the after- shocks are still to come.