tv Business - News Deutsche Welle September 15, 2018 7:02am-7:15am CEST
it was the largest bankruptcy filing in u.s. history and shock waves around the world this weekend marks the tenth anniversary of the collapse of lehman brothers we take a look back and ask what has changed also the turkish president already making rumbling noise towards the central bank a day after it hiked interest rates there are slips again. i'm christopher nolan good to have you with us on september fifteenth two thousand u.s. investment bank lehman brothers filed for bankruptcy the events and everyone from u.s. investors to the spanish property owners running for cover twenty five thousand lehman brothers bankers found themselves out of work overnight and then there was a giant but not too big to fail lehman had become so dalton mortgage origination that it was basically a real estate hedge fund disguised as an investment washington wasn't willing to save the financial institution although it did save others. now in the
aftermath of the lehman brothers collapse the then u.s. administration introduced stricter banking regulations known as the dot frank wall street reform and consumer protection act president donald trump has long been a critic of frank back in may you scrap some of the rules for small and medium that many on wall street want the deregulation to go even further critics say racing restrictions on banks could prompt the next financial crisis. so let's go now to the heart of darkness were it all began in new york so if correspondent is standing by sophie you talked to former lehman employees how do those people remember those bad old days. well after listening to some former staff members that seems to me that at least some people on the lower level of the hierarchy weren't really aware of how bad the situation was even days before the bank one of the guys who handle the e.t.f. trading top. me that two thousand and eight actually had been kind of
a good year for him for a rather long time afterwards people were still coming in to work although they couldn't really do anything as they were being told not to trade anything and many employees decided to quit before everything really went downhill surely a bank as big as that just doesn't vanish into thin air is there is thing left to flee. well first of all there were truth separate bankruptcies the first it was a lehman holding company the second was what remains of the broker dealer sold to barclays and now ten years later both the holding company and the broker dealer are nearing the end of the wind down the vast majority of claims have been taken care of the one point two trillion dollars of claims originally fired all but four point one billion dollars have been resolved the former holding has returned nearly one hundred twenty five billion dollars to creditors thus far but some people are still waiting hoping to get money out of lehman states at one of the last big claims
still outstanding involved remember fifty former lehman executives who had invested some of their paychecks for retirement into deferred compensation plans and this case is probably going to take some more years to resolve i mean the human remains the biggest bankruptcy in history so if you're looking back at the collapse of u.s. investment bank lehman brothers sophie thank you so much now the human brothers downfall unleashed a financial tsunami that tore across the world ripping through europe asia and finally hitting africa earlier i asked our correspondent in nigeria funny char how badly african countries were impacted. it's a given the fact of course that this continent is made up of five fifty plus countries of course the effects are felt but the fact there are many fold you would have to zoom in really to each and every country with different political economic environmental makeup to say so to really get the detailed picture of what really happened here ten years ago now what we can say as
a big picture if you'll remember of course the food crisis two thousand and seven to two thousand and eight so commodity prices were already volatile to begin with even before the global recession and that was through the reinforced by the collapse of lehman brothers the trickle down to a global recession that was especially felt very hard in sub-saharan africa but as i say if you zoom in into each individual country you will see a different effect a different consequence and goler for example slipped right into recession as a result nigeria the country where i am right now could absorb the biggest shocks and even though there is a slowdown in the economy it could pick up some pace again so let's talk a bit more about nigeria what exactly were the consequences of the financial crisis for africa's largest economy. nigeria certainly wasn't spades if you look at the stock market at death time twenty two can always dive it's lost seventy percent of its value logic contributes to the fact stats of the banking sector
logic control the stock market at the time there was a massive capital flight people taking their money a foreign investors to try to take all their money from and nigeria also we all know of course that this country is highly dependent on oil revenues that also made a huge asleep adult war spot at the same time at that time that year was such a developing country that it wasn't just the oil sacto but there was another sector that making sure that there is an absorbance all of this chicken down effect and that is the norm or the sector the agricultural sector was picking up some speed so all around that you know i did not slip into recession it was a slowdown of the economy growth but no recession it could pick up pace again just a few years later and funny speaking about spooked investors the financial crisis put at least a temporary stop to risky investments now is that one of the reasons why china has become such a massive investor in african countries whereas europe and the u.s.
are lying behind. no one can really ignore africa neither europe u.s. and china the reason why china really put africa on the top of their academic agenda has to be china itself china was so needy time and still is in need of commodities in need of energy to boost their own manufacturing capacity that they're literally ascending delegates from china to each and every capital city of african countries so therefore of course it was the needs to impose their own economy to get invested here the u.s. is rather focusing on. many factoring goats. recently but you can see very strong ties with europe as about you know what i would want to point out have that africa is really becoming self-confident african countries do not just want to free trade or more trade with all these countries but they want to have a fair trade right w. correspondent funny char reporting from lagos funny thank you so much and ten years
on what have you learned how is the financial world changed and are banks policymakers and consumer better prepared critics say the next financial crisis could already be brewing. the financial crisis is over the banks have been saved hundreds of billions in taxes pulled them back from the abyss but experts say the world economy isn't in the clear yes many governments are forced to take on massive debt to ward off the world financial tice's. the next threat is going to come from a very different quarter and it's going to it's a very different nature than what struck the world in two thousand and eight it has to do with publicly held debt both in the united states and europe and that is the next term threat to the world economy and the results could be every bit as catastrophic and perhaps even more so than what happened in two thousand and eight take italy where sovereign debt has climbed from one hundred two to one hundred
thirty percent of g.d.p. since two thousand and eight that means the country owes more money than the combined value of all goods and services produced initially each year the united states debt levels have also ballooned in the same timeframe as of france's jumping from sixty eight to ninety six percent of g.d.p. . the international monetary fund predicts the debt levels over ninety percent of g.d.p. hinder economic growth and it also limits government's ability to react if the economy starts to slow down which could kick off a financial death spiral leading the i.m.f. to the conclusion that the world is facing greater financial risk today than it was at the stars of the financial crisis in two thousand and eight. u.s. president on strong support of the aids to move forward with new tariffs on iran's two hundred billion dollars in chinese goods that's according to u.s. courts but it's unclear when or if the new sanctions will be implemented hughes is
trying to of taking unfair advantage of the u.s. and the country's bilateral trade relationship. the russian central bank has raised the country's key interest rate by twenty five basis points to seven and a half percent the move comes despite pressure from prime minister dmitri who called on the bank to lower rates to keep cash flowing to businesses and individual lenders but central bank heads ignored the appeal arguing that preventing rising inflation took priority russia has been grappling with higher prices for food and basic goods as the ruble has. now yesterday turkey's central bank hiked its key interest rate to a record twenty four percent that was against the express wish of president add on the central bank's move immediately halted in their us dramatic slide this year but it's climbing again but only for a day i was not happy and today to get. to one on home
turf addressing members of his a k p justice and development parsi he made it clear how he feels about turkey's central bank going its own way. didn't. make you bank yesterday the central bank raised its interest rates very sharply. showing. talks of independence you're well well here you go have your independence and i will see the results of this i met a patient person but my patience has limits. those words initially sent the lira down slightly by their zero point four percent reflecting concerns of an escalation in this spot between the turkish president and the country's central bank. but to compare the lira rose five percent against the dollar on thursday following the central bank finance meant that it was raising interest rates. and that wraps up
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