Central Banking

Crockett on lessons from history

The past does not repeat itself, but, for Sir Andrew Crockett, it rhymes.

For Sir Andrew, the general manager of the Bank for International Settlements from April 1999 until March 2003, the current crisis in many ways replicates previous turmoil with its excesses of maturity mismatches and credit.

But with a crucial exception. "What's much different is that with the development of complex instruments, particularly in the credit-default market, institutions have been able to become more leveraged