• There’s a lower probability but can’t rule out another Lehman
  • Regulatory reform not finished yet
  • Investors trust returning to the market, return of trust doesn’t mean Europe can relax
  • Non-residents hold 35% of Spanish gov bonds
  • US money-market funds raised holdings by 90% in last 12 months
  • US bank stress tests in 2009 were credible
  • Two European stress tests didn’t return trust, banks can’t provide credit if trust missing
  • US tackled non-performing loans more strongly

Jorg Asmussen speaking at a conference in Frankfurt.