Silos and silences: The role of fragmentation in the recent financial crisis

Abstract

Why did the financial crisis of 2007 and 2008 explode with such vehemence? Why did so few people see this crisis coming - or prevent the credit bubble from growing so large, before it turned into a bust? These are questions which have been asked numerous times by policy makers, journalists, investors, risk managers and bankers since the financial turmoil of 2008. And dozens of different explanations have been offered.